The Hindu : New Delhi News : BJP leaders demand cut in fuel prices

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Sunday, Oct 26, 2008
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New Delhi

BJP leaders demand cut in fuel prices

Staff Reporter

“Public sector oil companies reaping huge profits due to decline in global crude prices”

Harsh Vardhan quotes a response to a query under the Right to Information Act
Centre earned Rs.170,000 crore from the oil sector this fiscal, says Malhotra

NEW DELHI: Delhi BJP leaders are making a big issue of the Congress-led UPA Government’s reluctance to roll back the prices of petrol and diesel despite the public sector oil companies reaping huge profits in the wake of a sharp decline in global crude prices.

Delhi unit president Harsh Vardhan on Saturday charged that while the public sector oil companies are making huge profits on sale of petrol and diesel, the Centre has not lowered the prices.

The BJP leader said that in response to a query under the Right to Information Act the Union Ministry of Petroleum and Natural Gas had informed that all its “Navaratna” companies are earning profits. According to the information provided by the Government, he said, Indian Oil Corporation earned a profit of Rs.6,963 crore in 2007-08, Bharat Petroleum Rs.1,581 crore, Hindustan Petroleum Rs.1,135 crore, Oil and Natural Gas Corporation Rs.1,670 crore, and Gas Authority of India Ltd Rs.2,601 crore.

Dr. Vardhan said the Ministry had also informed that the Government had provided a subsidy of 82 paise only on kerosene being supplied through the ration shops from 2004-05 to 2007-08 whereas it had been continuously claiming that it had been paying a subsidy of about Rs.25. Similarly the Petroleum Ministry provides a subsidy of Rs.22.58 on cooking gas, he said, adding that the Government had been misleading the people by advertising that it was providing a subsidy of about Rs.300 to the public on each cylinder of domestic cooking gas.

The BJP leader said the Petroleum Ministry had not been providing any subsidy to the people on petrol and diesel and it was actually imposing 55 per cent tax on them. “In such a scenario,” he said, “the Government can bring down the price of oil by up to 50 per cent and this would also help bring down the prices of essential commodities.”

Earlier, the BJP’s Chief Ministerial candidate, V. K. Malhotra, while demanding a reduction in prices of petroleum products, had charged that the Government was looting the people by making big profits on sale of oil.

He had stated that the Centre had earned revenue amounting to Rs.170,000 crore from the oil sector this fiscal and this amount was Rs.35,000 crore more than the previous year. While one litre of crude oil costs around Rs.19, the Government has been selling petrol at over Rs.50 per litre. Considering other costs, he said, the price of petrol should still be reduced by at least Rs.8 to Rs.10 per litre.

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