Petrol prices not coming down as states don't want it under GST: Hardeep Singh Puri

Kolkata: Petrol prices in the country are not coming down as the states do not want to bring fuel under the ambit of the GST, Petroleum Minister Hardeep Singh Puri said.

Puri said petrol prices crossed the Rs 100-mark in West Bengal as the TMC government is levying heavy taxes.

"If your question is do you want the petrol prices to come down then the answer is yes. Now, if your question is why the petrol prices are not coming down, then the answer is because the states don't want to bring it under GST," he said.

"The Centre charges Rs 32 per litre (as taxes on petrol). We charged Rs 32 per litre when the fuel price was $19 per barrel, and we are still charging the same even when the price rose to $75 per barrel. With this Rs 32 per litre, we provide free ration, free housing and Ujjawala, among several other schemes, to the people," he said.

Puri said the West Bengal government increased prices by Rs 3.51 per litre since July, resulting in the petrol crossing the century-mark.

"The combined taxation is around 40 per cent here (West Bengal). It is very easy to make statements. Had you (TMC government) not increased the price by Rs 3.51, then it would have been still under Rs 100 per litre," he said.

Moreover, Puri has said the Centre is focusing on exploration and production of oil and natural gas to make India a self-reliant country in energy requirement, and the work on meeting the target of 20 per cent ethanol blending in petrol by 2025 is on track.

Puri, the minister for petroleum and natural gas, said nine per cent ethanol blending in fuel has already been achieved.

"Exploration and production of natural gas is the top priority for the government to attract foreign and domestic investment and enhance output," he said.

Augmenting ethanol blending in fuel is critical for the energy security of the country, the minister said.

India imports almost 85 per cent of its liquid hydrocarbon requirement and spends over Rs 12 lakh crore.

The Centre is targeting to have 20 per cent ethanol-blended fuel by 2025. Earlier, it had planned to achieve the goal by 2030.

Allaying fears of large scale farming of the bio-fuel raw material impacting food security, Puri said, "We are looking at agricultural waste and even bamboo in the north-east region for ethanol. So, this should not be a problem."

He was speaking at an interactive session organised by Indian Chamber of Commerce in association with Young Leaders Forum here on Wednesday evening.

Asked what exactly the government is doing to ramp up exploration and production (E&P) activities, the minister said, "We are doing (something)... but this is not a forum to make announcements."