Global oil prices crash but rate cut minimal

Tribune News Service

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Amritsar, March 11

Farmers and traders in the district are unhappy with the Union Government for not passing on the benefit of fall in global oil prices to consumers in the country. They hit out at the government for increasing oil prices when the global crude oil prices rose but not lowering the rates in the country when global prices dipped.

The recent fall in global crude oil prices is caused by the spread of Covid-19. Samir Jain, the general secretary of the Punjab Pradesh Beopar Mandal (PPBM), said state-owned oil marketing companies (OMCs), tyre industry, synthetic fibre producers and trades using oil derivatives as core inputs and producers of lubricants, transformer oils, plastic products, soaps and detergents would benefit from lower oil prices.

Kuljit Singh, a farmer from Mahal village, said taxes made up almost half of the fuel price as the Centre levied excise duty and the state charged the VAT. He said the OMCs did not pass on the benefits of price fall to customers but rather resorted to profiteering to make up for previous losses.

He said as farming was passing through a tough phase due to high investment cost, the government must lower the oil prices.