The government may have boosted its own revenue collection but it is yet to pass on the gains on account of cheaper fuel prices to Indian consumers.
Terming the spike as temporary, Pradhan said the drop in prices for over a fortnight after the daily price revision was introduced has been ignored and only "temporary" phenomenon of rising trend is being highlighted.
The government can not change fuel prices on a knee-jerk basis, Petroleum Minister Dharmendra Pradhan said on Wednesday on a day when stocks of state-run oil marketing companies (OMCs) tanked by as much as eight per cent following recent hikes in transport fuel prices.
The Minister also attributed natural calamities like Irma has a direct impact on the petroleum price hike. These taxes impose an artificial limit on the amount of supply that can be profitably sold to the Indian consumer, which in turn leads to consumers paying higher prices for petrol and diesel. "The government can not change fuel pricing on a knee-jerk basis", Pradhan added.
The government is unlikely to let public sector fuel marketing companies to pass on further increments in retail costs of gasoline and diesel to consumers, and may ask the fuel retailers to absorb any such increases if global crude price edges higher, the government official, who did not want to be named, said.
Earlier in the day, the Congress slammed the Prime Minister Narendra Modi-led government over spike in petrol, diesel prices and urged the Centre to pass on the benefit of 50 per cent reduction in global prices of crude oil to the common person.
Le procès des journalistes de Cumhuriyet vire à l'absurde — Turquie
Un symbole de l'érosion de la liberté de la presse en Turquie, où 160 professionnels des médias sont emprisonnés. Motif invoqué: trois des témoins appelés à la barre n'ont pas pu être interrogés.
Meanwhile, under the daily revision of fuel prices, petrol in Mumbai on Monday cost Rs 79.41 a litre, breaching the level it last touched in August 2014.
The two hurricanes to have hit the American shores in succession have hit the global refining capacity by as much as 13%, leading to a rise in the retail fuel prices in the worldwide markets, Dharmendra Pradhan said. "Over the past three months, the reduction in refinery capacities has resulted in a 20% hike in the price of diesel and an 18% hike in the price of petrol globally".
Mumbai: With the dynamic mechanism of fuel pricing in place, prices have been on a constant rise with petrol prices shooting up by almost Rs 7-8 on Wednesday.
"The petrol and diesel prices are skyrocketing".
Dynamic fuel pricing is followed in many developed countries and India opted for it as a response to the recent volatility in global crude oil prices.
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