Government cannot change fuel prices on a knee-jerk basis : Dharmendra Pradhan

Janjivan Bureau / New Delhi :  The government cannot change fuel prices on a knee-jerk basis, petroleum minister Dharmendra Pradhan said on Wednesday on a day when stocks of state-run oil marketing companies (OMCs) tanked by as much as eight per cent following recent hikes in transport fuel prices. Oil and Petroleum Minister Dharmendra Pradhan today held a high-level meeting with top ministry officials and representatives of oil marketing companies.
After the meeting, Pradhan addressed the media and assured citizens that the ministry, through the daily price revision mechanism, had worked out the best formula to ensure retail prices of petrol and diesel were reflective of the crude oil prices in the international market.
“The government cannot change fuel pricing on a knee-jerk basis,” Pradhan told reporters, noting that global crude oil prices had recently gone up as much as 15 percent owing to production being hit in the US owing to the impact of multiple hurricanes.
“Fortnightly pricing was pinching consumers. We made it daily so you don’t have to wait for 15 days to enjoy the benefits, if the international crude prices fall”, he said.
Pradhan said Hurricane Harvey and Irma in recent days had impacted fuel prices because 13 per cent refinery deficits had pushed the prices up.
But he assured that this won’t be the case in the days to come. “Due to Harvey and Irma, petrol prices went up by 18 per cent and diesel by 20 per cent. Today, for instance, prices are stable. Estimates suggest that prices will ease out in the coming days”, Pradhan said.