Petrol price can be cut by Rs 25 per litre: Ex-Finance Minister

Petrol price can be cut by Rs 25 per litre: Ex-Finance Minister
Petrol rates can be reduced by Rs. 25 per litre, claimed P. Chidambaram (Representational Image)

As fuel prices continue to surge across the country for the 10th consecutive day on Wednesday, former Union Finance Minister P. Chidambaram claimed that the rates can be reduced by Rs. 25 per litre, but the government is not doing so.

“It is possible to cut up to Rs 25 per litre, but the government will not. They will cheat the people by cutting the price by Re 1 or Rs 2 per litre of petrol,” he said in a tweet.

Petrol prices rose by 30 paisa in most metropolitans on Wednesday. In Mumbai, they touched Rs. 85 per litre, whereas in New Delhi, the rate crossed Rs. 77.

Even non-metropolitan cities are reeling under the record-high fuel prices, much to the dismay of vehicle owners.

Meanwhile, Bharatiya Janata Party (BJP) president Amit Shah, on Tuesday, said that the government is working on a plan to check the spike in fuel prices.

“The government is taking the matter of oil prices seriously. Petroleum minister will have a meeting with the officials of the oil companies. We are trying to work out a formula to reduce the prices in the next three to four days,” Shah told reporters.

Petrol and diesel prices vary from state to state depending on the factors like VAT and local sales tax.

According to analysts, less production of oil in the OPEC (Organization of the Petroleum Exporting Countries) and hike in crude oil price in the international market are some of the factors affecting the fuel price.

Earlier this week, All India Petroleum Dealers Association president Ajay Bansal said that they can only control the rising fuel price by reducing VAT of state and central taxes.

Interestingly, Indian consumers pay almost 35 and 20 percent more on fuel than their counterparts in neighbouring Pakistan and Sri Lanka respectively.

According to GlobalPetrolPrices.com, consumers in Pakistan pay approximately Rs 51.61 for petrol while Sri Lankans pay nearly 63.90. Consumers in Nepal also pay around Rs 68.76.

China, incidentally, is the only neighbouring country where prices of petrol on average are marginally higher than India.

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