Open states that haven’t cut fuel taxes must do so’    

opposition- ruled states that didn’t cut value added tax (vat) on petrol and diesel earlier should reduce it now to bring relief to consumers, oil minister harder Singh Puri has said. Puri accused states of “making a killing” by charging ad- valorem rates, which result in high revenues with rising prices, and asked states, ruled by the congress and other opposition parties, to reduce rates by half. The central had cut taxes on fuel in November, which was followed by Vat reduction by several Bop ruled states, he added. The government wasn’t dictating prices to oil marketing companies, which were free to decide prices, which were free to decide prices on their own, Puri said. “oil marketing companies (OMCs) are also responsible citizen entities. Now if you’re making money, I’M just hazarding a guess, on petrochemicals and if you think that there is some under –recovery on another you might decide to postpone that under recovery for a while,” Puri said, while denying that oil companies take pricing decisions under government pressure.

Oil companies are currently selling petrol and diesel at significantly below the market prices High fuel prices have been feeding inflation. “I ‘m worried about inflation. We keep monitoring. We have to make sure it doesn’t go be yond a point,” he said adding that the entire world was facing the heat of inflation. Puri said oil companies take the ire own decision on importing from Russia. India imports in a quarter what Europe imports in an afternoon from Russia, he said, to highlight the small quantity of oil India gets from Russia. Puri said it would be a problem for the entire world if the oil price stays above 100 per barrel. Oil prices are high because producing countries haven’t produced as much as required he said. The world hasn’t emerged from the ravages of the pandemic, Puri said S-ET

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