Diesel Price: Modi Says Centre Absorbed Rs 43 of a Rs 50 Hike
The Prime Minister told a farm conference the government took on most of a West Asia-driven fuel shock; the figures are his own and not yet independently checked.
Image: The Tribune
Prime Minister Narendra Modi said on Thursday, 12 November, that the government raised diesel prices by only Rs 7 a litre when conditions called for a rise of at least Rs 50, and absorbed the remaining Rs 43 to protect farmers. He was speaking in New Delhi at the Bharat Agriculture Conference organised by the India Today Group, according to The Tribune and ANI. The figures are Modi’s own; no government document with the break-up has been released.
Farmers Were the Stated Reason
Modi said the conflict in West Asia pushed crude oil from $70 to $122 a barrel within a few weeks, which he called a major challenge for India. Diesel is the main running cost for tractors, pump sets and farm transport, so the Prime Minister framed the decision as a shield for the farm sector. He did not say how long the government can keep absorbing the difference or who bears it, whether the Centre, oil marketing companies or both.
Where the Numbers Stand Unverified
The Rs 50 figure is what Modi said the situation “warranted”. It is not an official price calculation, and IPB has not found a petroleum ministry or oil company statement that confirms it. Retail inflation for October was 6.09 per cent, above the RBI’s 6 per cent limit, according to government data covered by IPB. For how crude and taxes build up a pump price, see IPB’s explainer on what makes up petrol at Rs 102 in Delhi.
Also read PM-Kisan 24th Instalment: ₹18,680 Crore for 9.34 Crore Farmers
In the same speech, Modi said agricultural exports are worth more than Rs 4 lakh crore a year and that the past decade was the first since Independence in which farm output grew more than 4 per cent annually. He also said India is the world’s largest producer of milk, pulses, jute, rice and millets.
No Price Review Date Announced
No date has been given for any further diesel price revision, and Modi did not say whether the Rs 7 rise is final. Until the petroleum ministry or oil companies publish a break-up, the Rs 43 figure remains the Prime Minister’s claim.
Source: Based on reporting by The Tribune and ANI.
Image: The Tribune.
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