Union MoS Rameshwar Teli justifies high fuel taxes; terms it 'payment for free vaccines'

As fuel prices continue to rise, Union MoS (Petroleum) Rameshwar Teli on Saturday, claimed that the unabated rise was the government's way of collecting fees for the free COVID-19 vaccines given to citizens. Speaking to reporters in Assam, Teli claimed that it was tax which was levied that was making fuel costly. Justifying high taxes on fuel, he said that citizens had not paid for vaccines, adding ' where will the money come from?'.

Union MoS justifies high taxes on fuel

"Fuel prices aren't high but include the tax levied. You must've taken a free vaccine, where will the money come from? You haven't paid the money, this is how it was collected," said Union MoS (Petroleum & Natural Gas) Rameswar Teli.

On the same day, when Union Petroleum Minister Hardeep Singh Puri was asked about rising fuel prices by reporters in Delhi, he remarked, "chodo (please leave it)". Puri has previously blamed the UPA govt's oil bonds for the current inflation in fuel prices. He claimed 'more than ₹1.5 lakh cr of oil bond is remained to be repaid' and it has resulted in the tying-up 'crucial resources, limiting fiscal space & restricting financial freedom of OMCs'.

Fuel prices stay high

On Monday, October 11, the oil marketing companies (OMCs) raised petrol and diesel prices for the seventh day in a row. According to a price notification from state-owned fuel retailers, the price of petrol has increased by 29-30 paise per litre and the price of diesel has increased by 35-37 paise per litre. Price of diesel in Mumbai was Rs 101.03 per litre, while diesel spiked to Rs 110.41 a litre. In Kolkata, a litre of petrol costs Rs 105.09 and a litre of diesel costs Rs 96.28. Petrol costs Rs 101.79 a litre in Chennai, while diesel costs Rs 97.59.

In March, then-Union oil minister Dharmendra Pradhan had told Parliament that the government is not considering a reduction in excise duty to cool rates from their record highs. Rates have risen as international oil prices touched USD 61 per barrel for the first time in more than a year on improving demand outlook amid the global rollout of COVID-19 vaccines, he had said. Central and state taxes make up for over 61 per cent of the retail selling price of petrol and about 56 per cent of diesel. Sparse protests have sprung across the nation demanding a cut in diesel and petrol prices.