Yet another BJP lie to hide the truth. The truth is that BJP Government’s earnings from the petroleum sector is significantly higher than interest on oil bonds and total principal due until 2024.

Since coming to power, the BJP government has paid back ₹3,500 crores of the principal amount and approximately ₹10,000 crores annual as interest.The earnings from the petroleum sector to the BJP Government in 2021-22 (₹4.5 lakh crores) is significantly greater than the sum of the principal amount (₹1.44 lakh crore of oil bonds issued) and total interest (almost as much as the principle) on the principal amount.

On August 16, while responding to queries by the media on the ongoing issue of soaring fuel prices, Finance Minister Nirmala Sitharaman claimed, “Due to oil bonds, the burden has come to our government. We are bleeding to pay the oil bonds of ₹1.44 lakh crore of the UPA government.”

She added, “We’ll still have to pay interest of ₹37,000 crore by 2026. Despite interest payments, a principal outstanding of over ₹1.30 lakh crore is still pending. If I didn’t have the burden of oil bonds, I would have been in a position to reduce excise duty on fuel.”

Let us also understand why these oil bonds were issued

Global crude oil prices prior to 2014 (during the UPA government) were significantly higher as compared to prices under the BJP government. Yet, the fuel prices under UPA were cheaper than current prices. The highest petrol price during the 5-year UPA Government was Rs. 81.80. This price was able to be achieved, even as global crude oil prices were at its peak, due to oil bonds.

However, Union Finance Minister Nirmala Sitharaman’s claim, “If I didn’t have the burden of oil bonds, I would have been in a position to reduce excise duty on fuel,” doesn’t hold merit because earnings from the petroleum sector to the central government is significantly higher than interest on oil bonds and total principal due until 2024.

This lie was rightly exposed by former Chief Minister of Karnataka, Sri. Siddaramaiah when he said, “There was a loan of Rs 1.30 lakh crore and today Centre has collected Rs 24 lakh crores via excise duty. Where is Rs 1.3 lakh crore and where is Rs 24 lakh crores?”

This is yet another attempt by the BJP Govt to hide their inefficacy by doing what they do best – CREATING & SPREADING FAKE NEWS!

Source: Economic Times & Alt News