Oil prices unlikely to come down soon

NEW DELHI: With petrol and diesel prices soaring new highs, it is unlikely that the prices will come down anytime soon. While Oil Minister Dharmendra Pradhan on Monday gave no indication of cutting down the excise duty on the product, Finance Secretary Hasmukh Adhia dismissed the possibility of reviewing excise duty on petrol and diesel now. “Centre and states depends on tax revenues to meet their expenses… When there is a pricing issue, states should respond and cut VAT,” Pradhan said.

He said the domestic oil prices go up when crude oil prices become high in the international market. Since July 1, 2017, global crude oil prices shot up by 47 per cent, which resulted in continuous rise in domestic prices. Indian Oil Corp Chairman Sanjiv Singh said that given the ongoing geopolitical condition and limited supplies by some nations, it is less likely that the prices will come down soon. Petrol price on Monday hit a four-year high at Rs 73.83 a litre, while diesel rates touched Rs 64.69 in Delhi.

In the last 15 months, duty on petrol rate was hiked by Rs 11.77 per litre and that on diesel by Rs 13.47 a litre, which helped the government boost collections, but gave no relief to consumers when international prices were low.

Pradhan said consumers will benefit if petrol and diesel are brought under GST regime at the earliest. “We are confident that for the betterment of the country, energy security and consumers, the GST council will bring petroleum products under GST ambit,” the minister said.