Fuel Prices To Spike Again In Coming Months, Says Expert `

New Delhi: Energy expert Narendra Taneja, in an interview with ANI, said that petrol and diesel prices will rise again in coming months. 

After fuel prices had been reaching record high in the country in the past few days, the Finance Ministry announced a cut of Rs 5 on petro and Rs 10 on diesel on Wednesday. 

Taneja said that oil is an imported commodity. Around 86 percent of the total oil used is imported. Therefore, prices of oil cannot be controlled by the government. 

Citing reasons for increase in the prices of petrol and diesel, Tanjea stated one of them being the Covid-19 pandemic. This was one of the major reasons for increasing oil prices in the international market. 

Since the demand for fuel came down during the pandemic, the oil prices rose. During the time of Covid, consumption and sale of oil had reduced by 40 percent, which further came down to 35 percent. Therefore, with reduction in sales, government revenue too came down. Although Taneja said that now the level of sales has reached back to what it was before the pandemic. 

Another reason that the energy expert cited for increase in oil prices internationally was promotion of green energy sources. Lack of investment in the oil industry and promotion of renewable energy sources like solar energy by governments in many countries is another reason why crude oil prices are increasing. 

The expert stated that crude oil prices can go up by Rs 100 by 2023. 

He however said that the current GST collection by the government suggests a positive trend for the economic recovery. “The government is in a relatively more comfortable position than earlier. Plus, our economy is based on diesel. If the price of diesel goes up that increases the price of everything. The inflation is high. Considering these things, the government has taken this step,” he said.

According to Taneja, in order to obtain more transparency and relief, petrol and diesel prices should be included in GST.