Sree Iyer on why the FM is getting into knots trying to explain the high prices of Petrol

Every time it appears that the Finance Ministry comes up with a new explanation on why Petrol and Diesel prices are so high. In this crisp monologue, Sree Iyer explains why this government is refusing to pass on the benefits of a low crude price and chooses to obfuscate the issue.


  1. I am not aware of how much petroleum products the private players sell in Indian market but as the Governments keep the prices higher the realization for these private players is more. I am aware that taxes levied on these products are also very high by Central as well as respective State Governments. But if there is duty back or tax benefit provision provided to these private players as incentive, then the actions of the Governments are much easier to explain. May be thorough investigation is required

  2. 2014-2021
    Total contribution to the Exchequer – Rs 20.56 lakh crore
    Total Oil Bonds Interest Paid – Rs 67,698 crore
    Total Oil Bonds Principal Paid – Rs 3,500 crore
    Total payment towards oil Bonds – Rs 71,198 crore
    Amount diverted – Rs 19.85 lakh crore
    % of total contribution spent towards oil bonds – 3.46%


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