Oil bond dues: The rationale behind not reducing your fuel bill

Finance Minister Nirmala Sitharaman finally answered the call of cutting fuel prices by pinning the blame on oil NSE 0.72 % bonds that were issued under the UPA government.

Oil bonds were issued by the UPA government in lieu of subsidies to Oil Marketing Companies between 2005-2010 when petrol and diesel prices were regulated.

The Modi government has used the oil bond argument to ward off any criticism for the sky high fuel prices and not reducing central taxes.

Let’s take NSE -2.08 % a look at what’s really happening here-