(TH)
Consumers will continue to pay higher taxes on petrol and diesel as the government has no plans to lower the excise duty on fuel. This is because notwithstanding the robust collections from the Goods and Services Tax, the Centre continues to remain vigilant about its fiscal health. “There is no proposal to lower the excise duties on petrol and diesel. We are not looking at anything of the sort at the moment,” said a senior government official.
While the dividend payment from the Reserve Bank of India at ₹30,659 crore is lower than estimated ₹58,000 crore and uncertainty over the projected ₹72,500 crore from disinvestment receipts, the Centre is keeping a close eye on its fiscal projections.
Global prices still low
A major source of comfort is the still low prices of crude oil in the global market. Sources said that a re-look may not take place until global crude oil prices touch at least $70 a barrel. “Though prices have begun to increase in the international market, they are still within range and there is not too much pressure from taxes on domestic consumers,” said the official.
Recently, Petroleum Minister Dharmendra Pradhan too had ruled out a cut in duties and had said it would be looked into when needed. The international crude oil price of the Indian Basket touched $53.63 per barrel on September 8, according to data by Petroleum Planning and Analysis Cell. With global crude oil prices at a record low, the government through a series of duty hikes in late 2015 and early 2016 had hiked the excise duty on petrol and diesel to help improve its own finances.
