new Delhi:
The government is monitoring rising crude oil prices, Finance Minister Nirmala Sitharaman said on Tuesday, as tensions between Russia and Ukraine climbed closer to $100 a barrel, as Moscow closed two ties in eastern Ukraine. Soldiers were ordered in different areas.
India, which meets around 80 per cent of its needs through oil imports, is worried about rising crude oil prices as it could push up its oil import bill due to inflationary pressures.
Speaking to media persons in Mumbai, where she had earlier met industry representatives in the post-budget talks, the Finance Minister said that the recent volatility in the stock market is also due to geopolitical factors.
“We are seeing developments and how it could affect us,” she said, adding that at this time, “the impact (of Russia-Ukraine) on our business is not yet felt”.
Asked whether the government would consider tax relief in view of rising crude oil prices, he said, “Crude oil is a worrying situation where we have actually voiced that we are looking for a diplomatic solution to the evolving situation in Ukraine.” Want, crude on all these headwinds. This is one of the very important considerations. We’ll have to see how it goes. We’re keeping an eye on Brent.”
Ms Sitharaman further said that the government had already reduced taxation on fuel in October last year to reduce domestic fuel prices.
“The prime minister cut fuel tax before Diwali in response to a public call. The problem is fuel prices are high due to global supply issues,” he said, adding, “What do oil marketing companies do? (with fuel prices), I have no answer”.
“When we come to this stage that we need to take a decision on reduction in excise duty on fuel prices, we will come out in public,” the finance minister said.
The government had cut excise duty on petrol and diesel prices by Rs 5 and Rs 10 respectively on November 4, 2021, bringing down fuel prices. Rates have not been increased since then.
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