NEW DELHI: Soaring petrol and diesel prices are likely to sharpen focus on high fuel taxes when the parliamentary standing committee on petroleum examines the pricing policy on Thursday.
Petrol is selling for more than Rs 100 in seven states and nearing the mark in others. Diesel has hit a century in Sri Ganganagar district of Rajasthan and ruling around Rs 95 a litre in other states.
The government blames a 27% increase in India’s crude purchase cost, from an average of $55/barrel in January to $72.12 on Tuesday, for the record pump prices. Crude is indeed a factor. But petrol and diesel prices are set according to their international prices and the rupee-dollar exchange rate. The taxes make all the difference for consumers at the pump.
