SHILLONG: The Meghalaya government will consider intervening to reduce the Value Added Tax (VAT) on fuel if the prices of petrol and diesel continue to soar.
Providing this assurance, Food Civil Supplies & Consumer Affairs Minister Methodius Dkhar clarified that the recent spike in petrol and diesel prices is not determined by the State Government but is a direct fallout of global factors impacting the Central Government.
He explained that the root cause of the price hike is the ongoing conflict between the United States and Iraq, which has triggered a global surge in crude oil prices. Prior to the war, crude oil prices were relatively low, but the current geopolitical tension has forced the Central Government to increase domestic fuel prices.
The Minister stated that the State Government has not yet held formal discussions on the matter as the price hike has only recently commenced and is ongoing. With the conflict continuing, it remains uncertain when the price trend will stabilize or whether rates will climb even higher.
Given the unpredictable global situation, the state administration is currently monitoring the international landscape before taking a definitive step. However, if the upward trajectory in fuel prices persists, the state government will sit down to formulate an alternative strategy, specifically looking into reducing the VAT it levies on fuel to provide relief.
Conversely, if the war concludes, crude oil rates are expected to drop, which would automatically lower fuel prices, an outcome the government is also anticipating.
Addressing concerns over the potential inflation of essential commodities due to the fuel hike, Minister Dkhar highlighted that the state relies on a State Price Monitoring Committee, headed by the Chief Secretary, alongside District Price Monitoring Committees to curb unauthorized price hikes. He urged consumers to actively report or lodge complaints if they encounter retailers charging exorbitant rates without official approval from the authorities.
Regarding the state’s current fuel reserves, the Minister assured that stock levels for petrol and diesel remain normal. Even if fresh supplies encounter temporary delays, the state holds sufficient buffer stocks to meet the demands of retail outlets for the next five to ten days. He further emphasized that measures are in place to ensure that the influx of new supply remains strictly continuous and uninterrupted.
In a separate update concerning Liquefied Petroleum Gas (LPG), Minister Dkhar confirmed that Meghalaya is not facing any shortage of domestic cylinders. He recalled that during the initial weeks of the conflict, widespread panic and rumors among citizens led to a tense situation, but normalcy has since been restored, and the state’s supply remains secure.
Clarifying the distribution system for domestic gas, the Minister explained that while there is no shortage, a strict regulatory system has been implemented to streamline supply. This system has caused some inconvenience to consumers due to a government guideline mandating that a cardholder cannot book a fresh refill within 25 days of their last delivery, leading to public resentment and complaints. Additionally, grievances have been raised by consumers who failed to receive their Delivery Authentication Code (DAC) number after booking.
Departmental inquiries revealed that the failure to receive the DAC numbers stems from consumers not updating their registered mobile numbers in the system or due to changes in their residential addresses. To resolve these issues, the Minister urged affected customers to utilize the dedicated WhatsApp groups, call the Toll-Free number, or directly visit their respective gas agencies to update their credentials.
On the commercial LPG front, the Minister acknowledged that there had been a minor shortage previously, but prices have stabilized significantly compared to the past. He noted that while the state previously received only 20 percent of its total commercial gas requirement, supply has now improved drastically, meeting 65 to 70 percent of the total demand.
Consequently, while the LPG scenario in the state has reached a much better position, it is not entirely identical to normal days as consumers must currently navigate several regulatory protocols to secure their supply.
