New Delhi: The Centre wants the subsidy on liquefied petroleum gas (LPG) to be given only to the vulnerable section of the population, government sources told CNBC TV 18 on October 18.
The current LGP subsidy regime is being reviewed, the sources claimed, adding that “all economic decisions need to be sustainable”.
The higher fuel consumption vis-a-vis the pre-COVID-19 period has been underlined by the government sources at a time when the domestic petroleum prices have peaked to a record high.
In Delhi and Mumbai, the per-litre petrol cost has climbed to the highest-ever mark, reaching Rs 105.84 and Ra 111.77, respectively.
Diesel is being currently sold at Rs 102.52 a litre in Mumbai and Rs 94.57 in the national capital.
The sources also told the news channel any global crude oil price, which is above $70 per barrel, will be “high for India”. Currently, the benchmark Brent Crude is trading at 85.53 per barrel.
The line of crude supply by the OPEC+ (OPEC members plus 10 major non-OPEC oil-exporting nations) “is less than demand”, the sources said.
Notably, the OPEC+ has severely regulated the flow of crude in the international market, following the onset of the pandemic, in an apparent bid to prevent a major fall in global prices.
On taxes levied on fuel, the sources told CNBC TV 18 that the Centre and states “together need to reduce incidence of tax on fuel”
Petroleum Minister Hardeep Singh Puri is in touch with Finance Minister Nirmala Sitharaman over taxation on fuel prices, they claimed, adding that the oil ministry wants wants petrol, diesel prices to come down.