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Through the daily price revision mechanism, Oil Ministry has worked out the best formula to ensure retail prices of petrol, diesel were reflective of international crude oil prices, Dharmendra Pradhan said.
In the media and assured citizens that the ministry, through the daily price revision mechanism, had worked out the best formula to ensure retail prices of petrol and diesel were reflective of the crude oil prices in the international market.
"Fortnightly pricing was pinching consumers. We made it daily so you don't have to wait for 15 days to enjoy the benefits, if the international crude prices fall", he said.
Pradhan said Hurricane Harvey and Irma in recent days had impacted fuel prices because 13 per cent refinery deficits had pushed the prices up.
But he assured that this won't be the case in the days to come. "Due to Harvey and Irma, petrol prices went up by 18 per cent and diesel by 20 per cent. Today, for instance, prices are stable. Estimates suggest that prices will ease out in the coming days", Pradhan said.
In response to the Opposition's questioning the Centre of benefitting only select oil companies, Pradhan hit back, "Should we be formula-driven or go for a knee-jerk reaction", he asked.
- CONGRESS CALLS CENTRE 'ECONOMIC TERRORISTS'
The Congress has called the Centre "economic terrorists" for burdening consumers with some of the highest prices in petroleum products in the world.
"Because product (crude) prices drop internationally, that doesn't mean refining costs and transportation costs go down. State taxes sometimes go up too", Pradhan retorted.
He said the Ministry of Petroleum cannot interfere in the day-to-day affairs of oil marketing companies, but can only press for transparency and efficiency. Bringing oil under GST, he added, was the only way to bring in some predictability.
"We aren't hiding anything. The revenue and taxes earned are invested towards welfare schemes like healthcare, roads and railways", Pradhan concluded.
