The benchmark Brent crude oil prices have remained above a barrel on most days in May and is now hovering close to $ 77 a barrel."A duty cut is the only option if spike in global crude oil price and product prices results in sharp rise in price of petrol and diesel for Indian consumers."This is a good development that should certainly help both fuel consumers and public sector oil retailers. This decision, however, came late and after the government faced strong criticism for holding on to higher duty on petrol and diesel to meet revenueTh rising crude oil prices presents a huge threat to India that meets 83 per cent of its oil needs through imports.Though murmurs for duty cut has begun now, the Centre is likely to tread carefully so that it did not sacrifice much of revenue that is already under strain after the implementation of GST. Companies like Indian Oil Corporation (IOC) have been told not to increase petrol and diesel prices since April 24 in the wake of Karnataka elections at high غير مجاز مي باشدt.The finance ministry has maintained a tough stance on excise duty cut to rein in rising price of petrol and diesel often passing the buck to states to cut higher duties.The duty cut may be restored if crude and product prices fell subsequently and remained low for a longer period.Retail price of petrol has moved up from Rs 68.63 a litre on April 24, the date since when retail price revision has been frozen.The revenue implications during last duty cut were Rs 13,000 crore during the balance period of current fiscal.

The Centre reduced excise duty on petrol and diesel by Rs 2 a litre on October 3 to tame rising inflation and to shield consumers from the surging price of auto fuels, the first cut after duty were raised on nine occasions between 2015 and 2016.89 a litre to and to a record high of Rs 65.New Delhi: The government may finally come to the rescue of the common man hit hard by rising fuel prices. The price of Indian basket of crude comprising sour grade (Oman & Dubai average) and sweet grade (Brent dated) has also shot up to over $ 72 a barrel this month as against an average of . "May be a barrel could be the trigger point for looking at the duties if this level is maintained for over a month," an official said.30 a barrel during April.38 a litre prevailing immediately after earlier round of Rs 2 excise duty cut on October 3 to 55-month high of Rs 74. Though the retail price of two products is deregulated and decided by oil companies on a daily basis, duty cut would arrest the momentum of price rise and bring relief to consumers while also help contain inflation," said a government official adding the states would also nudged to cut VAT.Sources in finance ministry said that inflation was their key concern and oil price movements were being constantly monitored to see prices did not shoot up beyond a point at the retail level. Apart from resulting in higher retail prices of petrol and diesel, higher oil prices increase India’s oil import bill and shoots up current account deficit and also results in higher subsidy pay outs. Higher inflation would have a bearing on interest rates..Though the quantum of is still to be worked out, sources said it could be graded with Rs 2 per litre cut on petrol and diesel to be considered at first. Even though product prices needed to be increased between Rs 2and Rs 3 per litre since then due to global developments," said an oil sector analyst asking not to be named.

The finance ministry may favour an excise duty cut on petrol and diesel if global crude oil prices remained above $ 75 a barrel for more than a month in succession. Similarly, China Aluminium capacitor components Factory diesel prices during the same period has moved up from Rs 56.93 on April 24.Officials privy to the development said the government’s stiff stance on the excise duty cut could be revisited soon if global crude prices continue to move north.

Why should a Mumbaikar pay for this?" questioned Mr Nirupam. This has exposed the failure of the PM on the economy front," he said."Mumbai is getting petrol for Rs 83 and diesel for Rs 70."Indians will throw this anti-people government at the centre into the sea. He promised to bring down the rates of petrol and diesel. This shows how the BJP is banking on looting the common man’s pocket to govern. Thats why we have come here to Chowpatty," he taunted..Mr Nirupam also raised questions about Prime Minister Narendra Modis promises about inflation. But, when the UPA government was thrown out of power in 2014, the petrol price was Rs 58 despite international crude oil rates being USD 138 per barrel."India voted for him because he spoke of curbing inflation.

Attacking the BJP-led state and central government, he said that Mumbaikars were paying the highest price in the country for petrol and diesel. Now however, barrel rates have gone down to USD 70 but petrol China Lithium battery components Manufacturers price is as high as Rs 83."Maharashtra has the highest state tax on petrol and diesel. This is the highest price in India. A party spending so much money on its foundation day celebrations is insensitive," Mr Nirupam said.Mumbai: Congress Mumbai chief Sanjay Nirupam on Thursday led a bicycle rally from Mahalaxmi Racecourse to Girgaum Chowpatty in south Mumbai to protest the rise in fuel prices over the past few days.