Finance Minister Pankaj Chaudhary said the crude oil and natural gas, fuel and energy subgroup in the wholesale price index (WPI) is directly related to the fluctuations in crude oil prices.

The government said Tuesday it would closely monitor evolving geopolitical developments and would make “calibrated interventions” to control fuel prices to protect the interests of the common man. Finance Minister Pankaj Chaudhary said the crude oil and natural gas, fuel and energy subgroup in the wholesale price index (WPI) is directly related to the fluctuations in crude oil prices.

When asked in the Rajya Sabha about whether the government will cut excise taxes to contain the escalation in fuel prices caused by the Ukrainian crisis, Chaudhary said the public oil marketing companies (OMCs) are making appropriate decisions about the pricing of fuel. petrol and diesel in line with their international product prices, exchange rate, tax structure, inland shipping and other cost elements etc.

“The government is closely monitoring these factors and evolving geopolitical developments and would make calibrated interventions as and when necessary to protect the interests of the common man,” he said. India relies on overseas purchases to supply about 85 percent of its oil needs, making it one of the most vulnerable in Asia to higher oil prices.

Amid the ongoing war between Russia and Ukraine, crude oil prices soared to $140 a barrel early last week. Prices have since cooled and are now hovering around $102 a barrel. The minister details the measures taken to contain fuel inflation and said central excise duties on petrol and diesel have been reduced by Rs 5 per liter and Rs 10 per liter respectively from 4 November 2021. reduced VAT on petrol and diesel.

“As a result, sales prices of petrol and diesel fell across the country. To protect the interests of the common man, the sales prices of diesel and petrol have not been revised since November 2021, despite the rise in global crude oil prices,” Chaudhary said.


This post Government to make calibrated interventions to keep fuel prices under control: MoS Finance was original published at “https://www.financialexpress.com/economy/govt-to-make-calibrated-interventions-to-keep-fuel-prices-under-control-mos-finance/2461693/”

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