Increasing prices of petrol and diesel legacy of UPA’s mismanagement?

In the city of Mumbai, where petrol prices crossed the Rs 100-mark for the first time ever on May 29, the fuel price is at Rs 107.83 per litre. Diesel price in the city is also close to Rs 97.04 a litre, the highest among metros.

Petrol prices in all metros have already crossed the Rs 100 per litre-mark. In Chennai, petrol is priced at Rs 99.47 a litre and in Kolkata Rs 102.08 a litre. Diesel is also priced at Rs 94.02 and Rs 92.57 per litre in both cities respectively. In Chennai, petrol prices fell by almost Rs 3 per litre on August 14 after the state government cut VAT on the fuel.

The rise in petrol price has become a political issue. People are facing problems due to the spiralling prices of petrol and diesel. The ruling government has been facing criticism for the hike in the fuel prices. 

BJP's CLAIM: Increased prices of petrol and diesel is a legacy of UPA’s mismanagement. Centre' bleeding' to pay UPA's oil bonds of Rs 1.44 lakh crore

Union Finance Minister Nirmala Sitharaman on Monday said, "UPA government had reduced fuel prices by issuing oil bonds of Rs 1.44 lakh crore. I can't go by the trickery that was played by the previous UPA government. Due to oil bonds, the burden has come to our government. We are bleeding to pay the oil bonds of Rs 1.44 lakh crore of UPA government." 

She said that the current government has paid over Rs 70,195.72 crore in interest in the last five years on oil bonds itself. "We'll still have to pay interest of Rs 37,000 crore by 2026. Despite interest payments, a principal outstanding of over Rs 1.30 lakh crore is still pending. If I didn't have the burden of oil bonds, I would have been in a position to reduce excise duty on fuel, " she said.

Amit Malviya, the National-in-charge of the BJP IT department had tweeted, "The increased prices of petrol and diesel is a legacy of UPA’s mismanagement. We are paying for the oil bonds that will come up for redemption starting FY2021 till 26, which were issued by UPA to oil companies for not increasing retail prices then! Bad economics, bad politics.

Here's how the Congress responded: 

Congress general secretary Randeep Singh Surjewala slammed Sitharaman tweeted, "Please stop falsehood or dare to contradict. 
1. BJP raised Central Taxes on Petrol & Diesel by ₹23.87 & ₹28.37/litre in 7 yrs.

2. Modi Government collected additional ₹17.29 lakh CR. 

3. Oil Bonds of 1.3 lakh CR are not even due for payment so far.

4. Modi Govt has extorted ₹22,33,868 CR by levying excise on Petrol-Diesel in last 7 years.

5. In 2020-21 alone, Modi Tax on Petrol-Diesel is ₹4,53,812 CR.

6. Till April 2021, payment made on Oil Bonds is ₹3,500 CR only, yet you falsely hold UPA responsible!