Govt may consider tax cuts to control skyrocketing fuel price
New Delhi, Mar 2: The finance ministry is considering cutting excise duties on petrol and diesel to cushion the impact of record high domestic prices, officials close to the discussions said.
A doubling in the price of crude oil over the past 10 months has contributed to record fuel prices. However, taxes and duties account for roughly 60% of the retail price of petrol and diesel in India, which is the world’s third biggest consumer of crude oil.
Since the coronavirus pandemic hit economic activity, the government raised taxes twice on petrol and diesel in the last 12 months to boost sagging tax revenues instead of passing on the benefits of low oil prices last year to consumers.
