New Delhi: Union Law Minister Ravi Shankar Prasad on Wednesday said that” The central government is working on a “long-term solution” to deal with volatility in global crude prices and frequent revisions in retail rates of petrol and diesel.”
“The government is keen that instead of having an ad hoc measure it may be desirable to have a long-term view which addresses not only the volatility but also takes care of the unnecessary ambiguity arising out of frequent ups and downs,” he told a news conference.
According to the projection by various trade analyst and investment banks, the only option left behind the government to reduce the rising fuel pricing is cut down the excise duty. While the government wants to wait for some more time and observe the fuel price.
India is the third highest importer of the crude oil buying about 80 per cent of its oil needs.
“The government should review taxation of petrol and diesel to provide relief to the customer,” said M K Surana chairman of Hindustan Petroleum Corporation. “The long-term solution is bringing petroleum products under the GST regime,” he added.
Earlier in January the Economic Survey, issued by the finance ministry estimated a $10 per barrel rise in global oil prices reduced growth by 0.2-0.3 percentage points, increased wholesale price inflation by about 1.7 percentage points and worsens the current account deficit by about $9-10 billion.
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