Even as the oil prices are soaring, Petroleum Minister Dharmendra Pradhan on Wednesday ruled out any cut in the excise duty, for now, to give relief to consumers.
Making this assertion in the Rajya Sabha, he said “There is no such proposal at present.” This reply came when he was asked if the Government was looking at cutting taxes to cool off prices. Petrol price crossed the Rs 94-mark in Mumbai and diesel soared to Rs 84.63 per litre on Wednesday. Retail pump rates have not seen a reduction in almost 11 months.
International benchmark rates had plunged to decade lows in April. The Government had hiked excise duty on petrol by a record Rs 13 per litre and on diesel by Rs 16 a litre to mop up gains arising from the fall in rates but did not cut taxes when oil prices bounced back. Retail petrol price have risen by Rs 18.01 per litre since mid-March 2020 and diesel rates have gone up by Rs 15.44.
Replying to questions on rising fuel prices, Pradhan said retail pump rates are governed by international prices as India is 85 per cent dependent on imports for meeting its need. Both central and State Governments rely heavily on collections from taxes on these products for meeting their developmental and welfare priorities, he said.
“They need some resources... (and) this (taxing petrol and diesel) has been a proven and substantial route by all the Governments, whether the State Governments or the Central Government,” he said.
The current rally in fuel prices is because crude oil prices have touched $61 per barrel mark for the first time in more than a year.