Dharmendra Pradhan claims lack of investment in petroleum sector reason for price hike

In the wake of rising prices of petrol and diesel across the country, Union Minister Dharmendra Pradhan stated that due to the COVID-19 pandemic, there has been no investment in the petroleum sector for almost two years which has now led to the increase in fuel prices. As per the minister, India imports 80% of petroleum products, which has resulted in price increases and the government is trying to bring more plans for the use of renewable energy.

'Lack of investment in petroleum sector amid COVID-19 causing fuel price hike': Pradhan

"India imports around 80 percent petroleum products. There has been no investment in the petroleum sector for the past two years due to the COVID-19 pandemic which caused an increase in fuel prices. The cost of imports has also been increased, so the Government of India is trying to bring more plans for the use of renewable energy,' said  Pradhan.

Dharmendra Pradhan assures 'Centre will control inflation'

Pradhan, who formerly served as Minister of Petroleum and Natural Gas, said the government is concerned about inflation and that it will be controlled in a timely manner. He further said the petroleum ministry will speak with members of OPEC (Organization of Petroleum Exporting Countries) and that the situation will improve following the meetings. He also reaffirmed Prime Minister Narendra Modi's objective of transforming India into "Atmanirbhar Bharat."

"Inflation is pricking people. Everybody is concerned including the government. The Centre will control this inflation in time.  In the last 2 years, the investment was supposed to take place in the petroleum sector for its production across the world but that did not happen. If new oil wells don't come up, the existing ones will get depleted. Due to this, the prices have increased. I believe that the petroleum ministry will speak to countries producing them at OPEC. The situation should improve," said Union Minister.

Fuel rates hiked for 6th consecutive day 

On Monday, petrol and diesel prices were hiked for the sixth consecutive day across the country. In Delhi, the petrol prices have risen to Rs 109.69 per litre whereas the price of the diesel was recorded Rs 98.42 per litre, with a hike of 35 paise per litre each. In Mumbai, the prices of petrol and diesel increased to ₹115.50 and ₹106.62 per litre respectively. In Kolkata, petrol costs ₹110.35 per litre and diesel costs Rs 101.56 per litre. In Chennai, petrol and diesel cost ₹106.35 and₹102.59 per litre respectively. The petrol rates have crossed the Rs 100 mark in several cities, diesel prices have also gone up in many states including Rajasthan, Maharashtra, Madhya Pradesh, Andhra Pradesh, and Odisha.