Union Minister, Rameswar Teli said that the prices of diesel and petrol in India cannot be controlled till the country increases its production of oil. However, India does not produce its own oil, we are dependent on other countries because of which we have to import our oil. Around 83 percent of the oil that we use in India is imported from other countries.
The minister of state for petroleum and natural gas said, “About 83 per cent of oil consumed in the country is imported by us. We are dependent on international market, and till we increase our production, its price cannot be controlled,” He also stated the reason behind increasing prices of petrol and diesel is that the price is increasing in the foreign countries. He said, “When the price of oil increases in the international market, our companies increase its price,”
Rameswar Teli also said that the country is trying to reduce the pressure of import on oil. The manufacturers are coming with CNG vehicles and electric vehicles. He also said that they are also working on “new means” but it is not clear which alternate fuel type is he referring to.
India imports most of its petrol and diesel from the United States and the Middle East. We also import 2 percent of our supplies from Russia. We are the second-largest oil importer in the world. According to the data from the Petroleum Planning & Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas, our country spends spent $119.2 billion in FY21-22 vs. $62.2 billion on the commodity in the previous fiscal year.
Petrol & diesel price could be hiked once again
According to a source of Business Today, the prices of petrol and diesel can be increased once again. The source said that it will be a graded price hike and not a onetime hike.
This time the price of diesel will be increased more than petrol. This is because the revenue loss for diesel for OMCs or Oil Marketing Companies is more than petrol. The hike is expected to be around Rs. 3 to 4 for diesel and Rs. 2 to 3 for petrol.
It is important to note that the price hike has not been finalized and the discussions are still going on. As of now, The Oil Marketing Companies are facing a revenue loss of Rs. 25 to 30 per litre on diesel and Rs. 9 to 10 on petrol. Because of this, the price has to be increased. Till now, the prices of petrol and diesel have been increased 14 times between March 22 and April 6.
As of now, the price of petrol in Delhi is Rs. 105.4 per litre and in Mumbai, it is Rs. 120.5 per litre. The diesel currently is selling for Rs. 96.67 per litre in Delhi and for Rs. 104.7 per litre in Mumbai.