Government Absorbs Global Oil Price Hikes, Says Piyush Goyal
Limited price raise shows how much of global hit govt has absorbed: Goyal
The Economic Times
Image: The Economic Times
Commerce and Industry Minister Piyush Goyal stated that the limited rise in fuel prices demonstrates how much the Indian government has absorbed the impact of global oil price increases. Despite rising costs, the government has maintained fertilizer prices through substantial subsidies, aiming to alleviate the burden on farmers.
- 01Petrol and diesel prices have only increased by ₹3 due to a ₹10 reduction in excise duty by the central government.
- 02The government subsidizes 90% of fertilizer costs, keeping prices at ₹300 for farmers despite the actual cost being ₹3,000.
- 03Prime Minister Narendra Modi has urged citizens to adopt voluntary austerity measures to reduce consumption of imported goods.
- 04India's foreign exchange reserves stand at $700 billion, sufficient to cover 11 months of imports, according to Goyal.
- 05The Ministry of Commerce is working on a co-location facility to enhance operational efficiency and reduce fuel consumption.
Advertisement
In-Article Ad
During an event in Mumbai, Commerce and Industry Minister Piyush Goyal highlighted the Indian government's efforts to mitigate the impact of rising global oil prices. He noted that petrol and diesel prices have only increased by ₹3 due to a ₹10 cut in excise duty, showcasing the government's commitment to absorbing costs. Goyal emphasized that fertilizer prices remain unchanged, with the government subsidizing 90% of the costs, allowing farmers to purchase fertilizers at ₹300 instead of the market price of ₹3,000. He also mentioned Prime Minister Narendra Modi's appeal for voluntary austerity measures to reduce imports, particularly of gold and fuel, as a response to current economic challenges. Goyal reassured that India's foreign exchange reserves are robust at $700 billion, covering 11 months of imports, which is considered healthy by international standards. Additionally, the Ministry is exploring a co-location facility to enhance operational efficiencies and reduce fuel consumption, while also addressing trade relations with the US amid ongoing inquiries.
Advertisement
In-Article Ad
Farmers benefit from subsidized fertilizer prices, which helps maintain agricultural productivity and reduces financial strain during a time of rising costs.
Advertisement
In-Article Ad
Reader Poll
Do you support the government's approach to managing fuel prices?
Connecting to poll...
More about Ministry of Commerce
Read the original article
Visit the source for the complete story.