In the wake of rising global crude oil prices, the government has raised concerns about fuel prices – petrol and diesel – and in this regard, it may soon announce a policy, G-Business Special Correspondent Ambreesh Pandey said in his report.
According to Pandey, “Oil marketing companies (OMCs) are under financial pressure as they have not raised prices for a long time. Similarly, petrol is priced at Rs 9-11 / L and diesel at Rs 23-25 / L. The OMCs have not yet recovered. ”
Amid these concerns, the government is rapidly working on alternative fuels and plans to increase ethanol from cereals with sugar, the report added.
The government is considering a number of options, including tax cuts, reduction of excise duty and reduction of VAT from the states, Pandey said, adding that fuel prices, especially diesel, are expected to rise.
India’s petrol and diesel consumption rose sharply in May on economic activity, as well as helped boost demand as the harvest season began, a preliminary industry data showed Monday, according to a PTI report.
Gasoline sales rose 14 percent in the first half of May from a year earlier, while diesel demand rose 1.8 percent. Cooking gas LPG, which has seen a decline in consumption due to higher prices last month, saw a 2.8 percent increase in sales between May 1-15.
Petrol sales by state-owned fuel retailers, which control about 90 percent of the market, were 1.28 million tonnes between May 1-15, up 59.7 percent from the same period last year and 16.3 percent more than in 2019, preliminary industry data showed.
Costs were 13.9 percent higher than sales of 1.12 million tons in the first half of April 2022.
(With PTI input)