Petroleum Minister justifies fuel price hike

A combination of factors, including increased investment in development of basic infrastructure, had resulted in the frequent increase in fuel prices in the country, Minister of Petroleum and Natural Gas and Steel Dharmendra Pradhantold mediapersons here on Saturday. The road and rail sectors got the highest ever allocation in the recent Union Budget. There was a 34% increase in allocation for infrastructure projects. The tax collected from the sale of fuel is among the sources garnering revenue for that. Another priority area is welfare projects. Around 80% of India’s fuel is imported and oil-producing countries are demanding a higher price, since their economies are not in good shape. However, oil-producing countries had announced future pricing mechanisms where they had given some relief to Asian countries like India, he added.