Petrol At Rs 100/Litre: Govt Can Reduce Excise Duty To Bring Fuel Prices Down; Talks With States Are On

LPG prices have gone up yet again on March 1, this time surging by Rs 25 for each refill of 14.2 kg liquefied petroleum gas (LPG).

Any delivery of these cooking gas cylinders starting from March 1 will come under the new price hike.

This is the sixth time in a period of 90 days and fourth since February 4, that the prices of LPG have increased, bringing the total surge to Rs Rs 225.

With continuous upward revision in gas prices, along with petrol and diesel, the government has received severe backlash from opposition parties, in addition to adding a big hole in the pockets of the public.

Amidst the increase in gas and oil prices in the country, it has been reported that the Finance ministry is mulling over cutting excise duties on petrol and diesel to compensate for the burgeoning rates.

While the increase in oil prices is led due a sharp rise in that of crude oil price across the global market, the Finance ministry is drafting ideas with concerned bodies to come up with the most effective way to counter the increasing oil prices, for consumers as well as the government.

Govt Considers Trimming Excise Duties on Petrol & Diesel

With the prices of petrol and diesel skyrocketing across the country, the government has come into picture and reports are that the finance ministry is conducting consultations with concerned bodies to battle this situation.

The finance ministry is considering cutting excise duties on petrol and diesel to diminish the impact of their increasing prices, states Livemint.

Additionally, taxes and duties for fuel account for about 60% of the retail price of petrol and diesel in the country.

The continuous increase in fuel prices in India is an effect of the doubling of crude oil in the last 10 months.

Government’s Plans on Increasing Fuel Prices

Some government sources informed that the finance ministry is undergoing discussions with oil companies, oil ministry and states to find the most effective path to lower the tax burden on consumers, while protecting the federal finances from a big hit, at the same time.

“We are discussing ways in which prices can be kept stable. We will be able to take a view of the issue by mid-March”, says an official.

Speaking on the issue, FM Sitharaman said that while she cannot comment on when the prices of fuel would reduce, she knows for sure that the centre and states will have to work together to reduce fuel taxes.

According to another source, decisions on fuel taxes could be made only after a meeting of OPEC and major oil producers.

“There is an expectation that OPEC+ would agree to ease oil output curbs, we hope oil prices will stabilise after their decision”, said this source.