New Delhi [India], March 27 : As the Centre slashes excise duty on petrol and diesel, Congress MP Sukhdeo Bhagat on Friday slammed the Narendra Modi government, saying that it didn't reduce prices when the oil prices had gone down in the international market. He claimed that India doesn't have storage capacity, and the country will suffer due to the government not finding an alternative.
Reacting to the move, Bhagat said, "When the oil prices per barrel had gone down in the international market, you (the government of India) had not reduced the prices in the country. If the prices are affected by the international market, then now is Modi ji controlling the prices? Both things are being said by the government."
He further warned that the country would ultimately suffer due to not finding an alternative.
"The country will have to bear the brunt of the government not finding an alternative. We (India) don't have storage capacity or any other alternative, and we are not self-reliant," he told ANI.
The remarks come after the Central government reduced excise duty on petrol to ₹3 per litre and brought it down to zero for diesel, as per a Gazette notification issued under the provisions of the Central Excise Act, 1944. Additionally, a windfall tax of ₹21.5 per litre has been imposed on diesel exports.
The decision follows escalating tensions in West Asia, particularly the ongoing conflict involving the United States, Israel, and Iran, which has led to a blockade of the Strait of Hormuza crucial route that handles nearly one-fifth of the world's crude oil supply. Before the crisis, India sourced around 12-15% of its oil imports through this route.
While the duty cut is expected to ease pressure on oil marketing companies facing losses due to surging crude prices, retail prices of petrol and diesel have remained unchanged so far.
The government has maintained that fuel supplies across the country remain stable. The Ministry of Petroleum and Natural Gas, in an official statement, assured that "all retail outlets are operating normally across the country" and that there are "adequate stocks of petrol and diesel available at all petrol pumps." It also urged citizens not to engage in panic buying amid circulating rumours.
Officials added that refineries are functioning at high capacity with sufficient crude inventories, and domestic LPG production has been ramped up to meet demand.
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