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Rs 2.2 trillion revenue foregone due to excise duty cuts on petrol, diesel: Hardeep Puri
Union minister for petroleum and natural gas, Hardeep Singh Puri, announced on Saturday that the government forewent approximately Rs 2.2 trillion in revenue due to cuts in excise duty on petrol and diesel from November 2021 to May 2022. Addressing a press conference, Puri discussed the measures taken by the Modi government to manage fuel prices amidst global crude oil price fluctuations.
Excise duty on petrol and diesel saw a reduction of Rs 13 and Rs 16 per litre, respectively, during the mentioned period, resulting in the revenue loss. Puri responded to queries about potential future cuts, emphasizing that decisions would hinge on geopolitical stability and international oil prices.
“The decision (to cut petrol and diesel prices) can be considered if the world situation and oil prices remain stable. However, unforeseen events, such as global conflicts, can impact these decisions,” Puri said, referencing incidents like the Houthi attacks in the Red Sea and the ongoing Russian-Ukraine war.
Highlighting that 85% of India’s crude oil needs are met through imports, Puri detailed the impact of the Russia-Ukraine war on crude oil supply. Despite potential sanctions, India diversified its sources and increased purchases from Russia.
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