India Bears Oil Price Burden on Behalf of Citizens Amid Global Market Turmoil
India has taken a financial hit to shield its citizens from rising global oil prices. The government, led by Prime Minister Narendra Modi, has chosen not to pass on the increased costs to consumers amid turmoil in international crude markets. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said that India has absorbed the shock of high international prices instead of burdening its citizens.
In a recent social media post, Minister Puri highlighted the surge in oil prices over the past month. International crude prices have risen from around $70 per barrel to approximately $122 per barrel, leading to significant increases in petrol and diesel prices in several countries, including Southeast Asia, North America, Europe, and Africa.
The government has implemented measures to mitigate losses for oil companies. An export tax has been levied on refineries exporting petroleum products abroad. This move aims to reduce the losses of around 24 rupees per litre for petrol and 30 rupees per litre for diesel, which would have otherwise fallen on taxpayers.