Informist, Thursday, Sep 19, 2024

--Fin min source: Not looking to cut excise duty on petrol, diesel
--Fin min source:Oil cos need to recover prev losses before price cut
--Fin min source: In talks with oil mktg cos on price cut possibility

By Priyasmita Dutta

NEW DELHI – The finance ministry is in talks with the oil ministry and oil marketing companies to consider lowering pump prices, a senior finance ministry official said today. However, the fuel retailers have expressed the need to first make up for the losses that they incurred previously when crude oil prices were high.

"We are in touch with them, but an immediate decision to cut prices may not happen as they also feel the need to make up for previous losses," the official told Informist. In March, fuel retailers reduced prices of petrol and diesel across the country after nearly two years by 2 rupees a ltr. Prices of the two fuels vary across the country due to state and local-level taxes, fees, and other levies.

This comes after Pankaj Jain, secretary, ministry of petroleum and natural gas, recently said at an event that the government may reduce retail prices of petroleum products if international crude oil prices continue to fall. "In the last 7-10 days, crude oil prices have come down. At present, the ministry is analysing the prices and how long they will stay low. It would not be appropriate to cut (retail prices) by following the developments of just a week. We need time to analyse this trend for a longer duration," Jain was quoted as saying in reports.

Brent crude oil prices fell below $70 per barrel this week, the lowest since December 2021.

In a recent interview with Republic TV, Finance Minister Nirmala Sitharaman said Prime Minister Narendra Modi will take a call on any reduction in retail fuel prices whenever he deems fit. "You can always say that global prices have come down, reduce the price... every time there has been an opportunity, prime minister has reduced. In response to it, many state governments also equally reduced, many others did not. Prime Minister Modi will take a call whenever he deems fit," she had said.

The fall in crude oil prices is boosting the profitability of oil marketing companies and potentially paving the way for a reduction in pump prices before Assembly elections in states such as Maharashtra and Haryana. However, the decline in crude oil prices has not always translated into reductions in petrol prices or diesel prices in India.

On the back of falling crude oil prices, the government on Tuesday brought down the windfall gains tax on domestically produced crude oil to nil.

The possibility of a cut in pump prices remains, but cutting excise duty is out of the picture, the official said. "There is no thinking of touching excise duties," the official said. End

US$1 = 83.66 rupees

Edited by Namrata Rao

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