No plan for excise duty cuts yet on petrol and diesel

A day after the government criticised major crude oil producers for not hiking output, finance ministry officials told Business Today TV that an excise duty cut is not yet on the cards.   “The petroleum ministry has been in touch with us regarding rising retail fuel prices, but we have not taken a call on any excise duty cuts as yet. The rising prices of crude oil are a major concern and even if we cut taxes, it will not help consumers much,” an official said, adding that the government is hopeful that international crude oil prices would stabilise soon.   In a recent meeting with international petroleum company bosses, the government pointed out that the decision of the Organisation of the Petroleum Exporting Countries (OPEC) to not hike production would hamper the ongoing global economic recovery and hurt consumers in countries like India.   OPEC’s decision came at a time when crude oil is trading at a near three-year high with benchmark Brent at around $84 to the barrel. At this level, Brent is over double the price a year ago.   Pump level prices of petrol and diesel prices in India are at record highs and likely to rise further as crude oil prices inch upwards. Some experts fear that crude oil prices could even reach $100-a-barrel levels. India has suggested a cap on fuel prices as well as urged major oil producing nations to ensure reliable and stable prices and supply.   The International Energy Agency has forecasted that oil demand would rise by half a million barrels per day (bpd) amid the global energy crunch. The agency has increased its global oil demand growth forecast in 2022 by 210,000 bpd, and now expects total oil demand in 2022 to reach 99.6 million bpd, slightly above pre-pandemic levels.