Government will take steps to keep petrol and diesel prices under control

The government says it will take "planned intervention" to keep fuel prices under control to protect the interests of the common man. The government is also eyeing the emerging geopolitical activities. Minister of State for Finance Pankaj Choudhary said that the crude petroleum and natural gas, fuel and power subgroups in the Wholesale Price Index (WPI) are directly related to the volatility in crude oil prices.

Responding to a question whether the government will cut excise duty to sustain the rise in fuel prices due to Ukraine's crisis, Choudhary said that public sector oil marketing companies (OMCs) take appropriate decisions on petrol and diesel prices. This is decided along with their international product prices, exchange rate, tax structure, inland freight and other cost elements etc.

The price of crude oil hit $140 a barrel early last week during the Russian-Ukrainian war. Prices have since fallen and are now hovering around $102 a barrel. Providing details of measures taken to control fuel inflation, the minister said that from 4 November 2021 the central excise duty on petrol and diesel has been reduced by Rs 5 per liter and Rs 10 Rs per litre, respectively.