Gas costs cannot be checked out in isolation: Oil Minister Puri on Rs 50 LPG worth hike

By PTI

NEW DELHI: A day after cooking fuel LPG costs had been hiked by Rs 50 per cylinder, Oil Minister Hardeep Singh Puri on Thursday mentioned fuel costs can’t be checked out in isolation and that gasoline costs have been held regular regardless of volatility in worldwide oil markets.

At a media convention, when he was requested concerning the steep improve in LPG costs, Puri first mentioned that the federal government has been consistently striving to extend home manufacturing of fuel and that there was no scarcity of gasoline provides anyplace within the nation.

“You cannot look at gas prices in isolation,” he mentioned in reference to hovering international power charges which have led to the value improve.

Non-subsidised LPG charges have gone up by Rs 244 or 30 per cent, in a span of 1 12 months and it now prices Rs 1,053 per 14.2 kg-cylinder within the nationwide capital.

Common households pay non-subsidised charges for the cooking fuel they purchase after the federal government restricted subsidy to simply poor beneficiaries who bought connections beneath the Ujjwala scheme.

Without making a direct reference to the LPG worth hike, Puri mentioned subsidies are supposed to particular goal beneficiaries and for particular durations.

“Subsidies have to be regressive,” he mentioned.

The minister mentioned that whereas some nations confronted a gasoline provide disaster, India didn’t face any scarcity of any gasoline in any nook of the nation together with the North East.

“Nowhere in India, there has been a shortage.”

“We have been able to hold prices steady,” he mentioned.

While cooking fuel costs have risen on eight events within the final one 12 months, they haven’t been in sync with the fee.

International oil and fuel costs have soared after Russia invaded Ukraine in February on fears of provide disruptions.

Rates have fallen in latest days on speak of recession on this planet’s largest oil client, the US.

Petrol and diesel costs have been on a freeze for over three months now.

The pause adopted charges being hiked by a report Rs 10 per litre in a matter of 16 days starting March 22.

In May, the federal government minimize excise obligation on petrol by Rs 8 per litre and diesel by Rs 6 per litre to chill hovering inflation.

At that point, the federal government additionally said that Rs 200 per cylinder subsidy on cooking fuel will likely be restricted to solely 9 crore poor ladies and different beneficiaries who bought free connections beneath the Ujjwala scheme and the remaining customers, together with households, pays the market worth (often known as non-subsidised charge).

Originally, non-subsidised cooking fuel was the one that buyers used to purchase after exhausting their quota of 12 cylinders at subsidised or below-market charges.

However, the federal government stopped paying subsidy on LPG to most households in mid-2020.

International oil costs jumped to a 13-year excessive of USD 140 per barrel in March earlier than shedding a number of the positive factors.

Brent was buying and selling at USD 101..73 per barrel on Thursday.

India depends on abroad purchases to satisfy about 85 per cent of its oil requirement, making it probably the most susceptible in Asia to greater oil costs.

While India has surplus oil refining capability, it doesn’t manufacture sufficient LPG to satisfy home demand and imports important portions from nations resembling Saudi Arabia.