Petrol, diesel prices to remain stable for now: Petroleum Secretary Tarun Kapoor

Petrol and diesel prices are expected to remain stable in the coming months, with global crude oil prices declining once winter season demand cools off, according to Petroleum Secretary Tarun Kapoor. In an exclusive interview with Business Today TV, Kapoor said the current surge in global crude oil price has been triggered by higher prices of coal and natural gas in the international market. “Prices also shot up on account of aggressive buying by countries in anticipation of a strong winter season,” he added. Oil prices have more than doubled over the past 12 months as the global economy rebounds from disruption caused by the Covid-19 pandemic. Regarding fuel pump prices, Kapoor pointed out that despite the excise duty cut by the central government, several states were yet to reduce value added tax (VAT) rates. The Centre is keen on uniform pricing across states, as otherwise the variation leads to abnormal demand at pumps across state boundaries. Speaking on the initiatives to increase domestic production of crude oil and gas, Kapoor said public sector Oil and Natural Gas Corporation Ltd (ONGC) has a major role in increasing domestic production. “We have told ONGC that we need more discoveries. With the current discoveries the production has declined and with time it will further decline. We want ONGC to grow and not shrink and look at deep sea exploration,” he said, adding that ONGC may soon approve some proposals of collaboration with the private sector. Commenting on recent price hikes of natural gas, Kapoor said that earlier price levels were not sustainable.