Transporters’ body terms 16p cut in petrol, diesel rates ‘ostentatious’

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Mumbai: Transporters’ body AIMTC on Friday termed the recent 14-16 paise per litre cut in petrol and diesel prices across major cities as “ostentatious”, and said there is still room to reduce prices by up to Rs 40 per litre.

In a statement, the All India Motor Transport Congress (AIMTC), which claims representing over 95 lakh truckers and entities, said it is an open fact that this small cut in the petrol and diesel prices has a bearing on the election in four states — West Bengal, Tamil Nadu, Kerala and Assam.

All India Motor Transport Congress Chairman (Core Committee) Bal Milkit Singh said, “We welcome the miniscule decrease in prices of petrol and diesel prices by about 14-16 paise per litre across major cities, which is on account of a correction in the price of Brent crude to about USD 62 per barrel in early April 2021 from a peak of $70 a barrel in early-March 2021.

Currently, the prices of petrol and diesel in the national capital stand at Rs 90.40 and Rs 80.73, respectively, he said.

“This suggests that there is still a room for reduction of over Rs 40 in each case.” Singh said the reduction in prices is “cosmetic in nature and too little to make any tangible difference in the current scenario”. Bringing them down further by over Rs 40 “is the need of the hour and the people of the country need relief from the adverse fall-out of second wave of the coronavirus pandemic”, he added.

AIMTC also said that in May 2014 when the international crude oil was $105 per barrel, the petrol price was Rs 71.41 and diesel price was Rs 56.71.

“In December 2020, when crude oil was at $47.58 a barrel, petrol in India increased to Rs 90.34 and diesel Rs 80.51,” he said.

The current crude prices are of July 2009 level when crude oil was around $64.82 per barrel and the petrol prices in the country was Rs 40.62 and diesel price was Rs 30.86, Singh said in the statement.