ECONOMY

Government closely watching crude oil prices and will intervene soon: Pankaj Chaudhary

Minister of State for Finance Pankaj Chaudhary on Tuesday told the Rajya Sabha that the government was working towards making calibrated interventions according to requirement to safeguard the interests of the common man with regard to fuel prices and Excise Duty. 


He added that the government was keeping a close watch on the geopolitical developments as they evolved. The minister also added that the government had reduced the Central Excise Duty on petrol and diesel by Rs 5 per litre and Rs 10 per litre respectively from November 4 last year. 


State governments had also reduced the Value-Added Tax (VAT) on petrol and diesel, leading to sobering of fuel prices across the country. 


Mr Chaudhary noted: “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.” 


Mr Chaudhary also explained that public sector oil marketing companies (OMCs) took appropriate decisions on petrol and diesel prices by factoring in international product prices, exchange rate, tax structure, inland freight and other cost elements. 


He further added that crude petroleum and natural gas and fuel and power sub-group (which includes petrol and diesel) in the Wholesale Price Index (WPI) were directly related to fluctuations in the prices of crude oil. The weight of the crude petroleum and natural gas and fuel and power sub-group in the WPI was 2.41 per cent and 13.15 per cent respectively. 


Mr Chaudhary also talked at length about the policy measures taken by the government to soften prices of edible oil, such as reducing the duty on edible oil with effect October 14, 2021. Basic duty on refined palm oil, palmolein, refined soybean oil and refined sunflower oil has been reduced from 32.5 per cent to 17.5 per cent with effect from October 14, 2021. 

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