Sources said, that the Centre is working out a solution with the Oil & Natural Gas Corporation (ONGC) to announce a cut in diesel and petrol prices, the meeting was held late Thursday, at Petroleum Minister Dharmendra Pradhan’s residence.
The government does not want to cut excise duty and is looking at the alternative means to reduce the prices of petrol & diesel.
ONGC supplies an estimated 20% of the country’s total crude oil requirement to refining and marketing companies IOC, HPCL and BPCL. ONGC had asked for a higher price to fund its capital expenditure for the next two years. ONGC and OIL last contributed to fuel subsidies in June 2015 with contributions of over 40% of the annual subsidy bill.
Union Minister Piyush Goyal said,”International crude oil prices have risen sharply in recent times, which have impacted the prices of petrol and diesel in the country…The Center, in consultation with states, is making a long-term plan so that the prices could be reduced and controlled in future.”
On the demand of bringing petroleum products under the Goods and Services Tax (GST), Goyal said, “I hope there will be a discussion on bringing petroleum products under the new tax regime at the next meeting of GST Council.”