Need long-term view to resolve fuel price rise issue: Prasad

New Delhi, May 23: Transport fuel prices going north is a matter of both increasing concern and discussion and the government trying to find a long-term solution to the problems issuing from global price volatility, IT and Law Minister Ravi Shankar Prasad said on Wednesday.

Briefing reporters here following a Cabinet meeting, Prasad was responding to queries on petrol prices in Mumbai, Delhi and Chennai having already reached unprecedented levels, and setting new benchmarks every other day.

Under the dynamic pricing regime, petrol in Mumbai touched Rs 84.99 a litre on Wednesday. In Chennai, price of the fuel breached the Rs 80 a litre mark on Wednesday and was priced at Rs 80.11 per litre.

In Delhi, petrol inched higher to a new record of Rs 77.17, and in Kolkata, it cost Rs 79.83, almost a five-year high. “In view of the global uncertainty on oil prices, the government is looking at the desirability of taking a long-term view to deal with the issue of volatility and the frequent ambiguity arising out of the fluctuation in prices,” he said.

“There is a compelling need for a long-term structured solution to the problem in which the government is actively engaged.”

The Minister also said the taxes on petrol and diesel go to fund development work that benefits both the Centre and the states, citing the example expenditure on works such as highways, digital infrastructure, education and creating medical institutes. (IANS)