‘Govt to make calibrated interventions on crude’
NEW DELHI: The government on Tuesday said it is keeping a close watch on geopolitical developments and would make ‘calibrated interventions’ to keep fuel prices under control to safeguard the interest of the common man.
The crude petroleum and natural gas, fuel and power subgroup in the Wholesale Price Index (WPI) is directly related to fluctuations in the prices of crude oil, said minister of state for finance Pankaj Chaudhary.
To a question in the Rajya Sabha on whether the government will cut excise duty to keep fuel price escalation because of the Ukrainian crisis in control, Chaudhary said public sector oil marketing companies (OMCs) take appropriate decisions on pricing of petrol and diesel in line with their international product prices, exchange rate, tax structure, inland freight and several other cost elements.
“The government is keeping a close watch on these factors and the evolving geopolitical developments and would make calibrated interventions as and when required to safeguard the interests of the common man,” he said.
India relies on overseas purchases to meet about 85% of its oil requirement, making it one of the most vulnerable in Asia to higher oil prices.
Amid the ongoing RussiaUkraine war, crude oil prices had touched $140 a barrel early last week.
The prices have cooled since then.
Giving details of measures taken to keep fuel inflation under control, the minister said central excise duty on petrol and diesel was cut by ₹5 per litre and ₹10 per litre, respectively, with effect from November 4, 2021.
Many states governments have also reduced Value Added Tax on petrol and diesel.
“Consequently, retail prices of petrol and diesel sobered down across the country. In order to safeguard the interests of the common man, retail prices of diesel and petrol have not been revised since November 2021, despite the increase in global crude oil prices,” Chaudhary said.
India is also considering various payment options so that the country can purchase Russian crude oil.
CRUDE OIL PRICES HAD TOUCHED $140 A BARREL EARLY LAST WEEK AMID THE ONGOING RUSSIA-UKRAINE CONFLICT