The Centre does not have any proposal to ask ONGC to bear a subsidy on auto fuels beyond a certain price limit.
Talks and news reports of ONGC and Oil India being asked to foot a subsidy for keeping petrol and diesel prices under check had gained momentum earlier this year.
In response to a query on the same, Minister for Petroleum and Natural Gas Dharmendra Pradhan said, “We do not comment on hypothetical situations.”
Earlier, Pradhan had maintained that the government was taking a holistic view to mitigate the fuel price hike.
Prices fall
The retail price of petrol in the country has fallen from a high of ₹78.43 a litre on May 29 in Delhi to ₹76.37 a litre on July 22. The price of diesel too has fallen to ₹67.98 a litre on Sunday from a high of ₹69.31 a litre on May 29.
Pradhan also said the Centre’s long-term plan to mitigate a surge in auto fuel price included convincing the Organisation of the Petroleum Exporting Countries (OPEC) to lower crude oil prices.
He said, “It was the result of a long-term strategy that India had adopted that led to oil producing countries under the OPEC lowering the price charged for crude oil purchases. Prime Minister Narendra Modi had appealed to the oil producing countries to keep in mind the interest of consuming countries like India. Today, I thank the oil producing nations for honouring India’s request.”
In June, Pradhan had expressed his concern over rising crude oil prices and its negative impact on consumers across the world, particularly in India.
Beyond threshold
An official statement had said that Pradhan emphasised that globally crude prices have gone beyond the threshold which can be sustained. Pradhan had also highlighted that market fundamentals do not support such high prices and urged the OPEC Ambassadors to convey the message to their respective governments regarding the need to move to responsible pricing, one that balances the interests of both the producer and the consumer.