Chidambaram Says Petrol Prices Could Undercut by Rs 25

P. Chidambaram says fuel prices could be reduced if ruling government releases savings made on lower crude oil costs. Chidambaram quoted during the discussion to bring Petrol, Diesel under GST. The customers nowadays, bearing the high fuel costs, in order to find a solution for such conditions P. Chidambaram took a dig on the possibility of lower petrol price by adopting corrective actions.

He further said, "Central government saves Rs 15 on every litre of petrol due to fall in crude oil prices. Central government puts additional tax of Rs 10 on every litre of petrol. Bonanza to central government is Rs 25 on every litre of petrol. This money rightfully belongs to the average consumer. It is possible to cut upto Rs 25 per litre, but the government will not. They will cheat the people by cutting price by Rs 1 or 2 per litre of petrol."

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Lately noticed a regular increase in fuel prices made one to file a petition for bringing Petrol and Diesel under GST. if it happens, the fuel prices could go lower at INR 45 per litre for Petrol and INR 35 per litre for diesel.

Furthermore, the factors such as diesel vehicles’ significance and need for fuel efficiency regulations for heavy-duty vehicles wre also the part of the discussion. An annual conference on vehicular technologies is also in consideration of SIAM which will make aware of the diesel vehicular technology. It seems that discussions will bring out solutions for significant concerns such as environment and energy security, regarding diesel technology.

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Regular increase in fuel price and its policy can be controlled and affected only when the senior auto industry reps, policymakers from Heavy Industries, Indian oil industry, Petroleum, Road Transport and Environment will come together. Along with the emission norms roadmap was also discussed.

It can only be achieved with an active contribution of government in setting priorities on creating the groundwork for cleaner emission norms, the sustainable pricing model for diesel fuel, and policy need for fleet modernization. The BS VI fuel will be available in the country from 2020 onwards. The timelines for shifting emission norms to BS VI has already been decided by the government. Post discussion with all stakeholders, it will be implemented in an appropriate manner. The emission roadmap has already been discussed by the Industry. Also, it will develop India specific technology to meet with Indian oil industry’s future norms.

The Indian oil industry will need a suitable time duration in order to move from BS V to BS VI emission norms. Meanwhile, the vehicle and engine manufacturers will develop technology which will work as per Indian road conditions, climate and driving patterns. Due to a regular increase in fuel price, Hyundai India has already announced its entire lineup pricing upto 2 percent that will be applicable from June 1, 2018.