Petrol, diesel rates to be reviewed every 15 days
What's the story
The Indian government has announced a major change in its fuel pricing strategy. Petrol and diesel prices will now be reviewed every fortnight, Vivek Chaturvedi, Chairman of the Central Board of Indirect Taxes and Customs (CBIC), announced during an inter-ministerial briefing on Friday. The decision comes in response to the recent surge in global crude oil prices due to the ongoing West Asia conflict.
Strategic measures
Vivek Chaturvedi calls response calibrated
Chaturvedi said the government's response to the rising international crude prices has been "very calibrated." He noted that disruptions in global shipping routes and supply chains have made the situation dynamic. "The situation is dynamic, it is not business as usual that you'll have predictability. We are living in difficult times," he said. He added that the government will assess the evolving situation every fortnight, including import trends and domestic consumption, before taking any further decisions on fuel pricing.
Revenue implications
Centre cuts excise on petrol, diesel
As part of domestic measures, the government has reduced the special additional excise duty on petrol to ₹3 per liter and cut it to nil for diesel. Previously, the duty was ₹13 per liter on petrol and ₹10 per liter on diesel, representing a ₹10 per liter cut. The cuts take effect immediately, according to the Ministry of Finance's statement.
Supply disruptions
Sujata Sharma says crude inventories sufficient
The ongoing West Asia conflict has also affected energy supply chains. Stocks of crude, LPG, and LNG have been impacted by the war. However, Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, assured that India has sufficient crude inventories and domestic LPG production has increased by nearly 40%. She also said that supply decisions have been calibrated to prioritize domestic consumers.