The government said on Tuesday that it is following the sharp evolution of geopolitical developments and will carry out “calibrated interventions” to keep fuel prices under control “in the interest of the common man”.
Finance Minister Pankaj Chaudhary said that in the wholesale price index (WPI) crude oil and natural gas, the fuel and energy subgroup are directly linked to fluctuations in crude oil prices.
In Rajya Sabha on whether or not the government will cut excise taxes to keep the rise in fuel prices under control in the Ukraine crisis, Mr Chaudhary said public sector oil trading companies (WTO) are making the right decisions about petrol and diesel prices. with the prices of their international products, exchange rate, tax structure, domestic goods and other cost items, etc.
“The government is closely monitoring these factors and the evolution of geopolitical developments, and would conduct calibrated interventions when necessary to protect the interests of ordinary human beings,” he said.
India relies on foreign purchases to meet about 85 percent of its oil demand, and is one of the weakest in Asia in the face of higher oil prices.
In the midst of the war between Russia and Ukraine, the price of crude oil hit $ 140 a barrel earlier this week. Since then, prices have cooled and are now hovering around $ 102 a barrel.
Giving details of the measures taken to keep fuel inflation under control, the Minister said that the special tax on petrol and diesel was reduced by Rs 5 per liter and Rs 10 per liter, respectively, from 4 November 2021 onwards.
In many states, governments have also reduced value-added tax on gasoline and diesel.
“As a result, retail prices for gasoline and diesel have been slashed across the country. To protect the interests of ordinary people, retail prices for diesel and gasoline have not been revised since November 2021, despite rising global crude oil prices,” Mr Chaudhary said. he said.