‘Situation dynamic’: Petrol, diesel prices to be reviewed every 15 days, says govt

The international crude prices have risen significantly due to the ongoing Middle East war, but petrol and diesel prices have not been increased in the country till now, however, they will be reviewed every fortnight as part of a calibrated and closely monitored response, said Vivek Chaturvedi, Chairman of the Central Board of Indirect Taxes and Customs (CBIC), on Friday. Addressing media at the inter-ministerial briefing, Chaturvedi said, “The situation is dynamic, it is not business as usual that you’ll have predictability. We are living in difficult times.”

“The total revenue foregone on the petrol and diesel duty slash is Rs 7,000 crore in a fortnight,” he added.

The Union government will assess the evolving situation on a fortnightly basis, including trends in imports and domestic consumption, before taking any decisions.

Earlier, the government announced a Rs 10 per litre cut in excise duty on petrol and diesel, with the aim of cushioning public sector oil marketing companies Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation from mounting under-recoveries amid soaring global crude prices. The duty reduction will not be passed on to consumers, and retail pump prices will remain unchanged.

Officials also flagged the impact of the conflict with disruptions in global shipping routes and supply chains.

‘Stocks of crude, LPG, and LNG being affected because of war’

“Stocks of crude, LPG, and LNG are being affected because of the war,” Chaturvedi said.

Reassuring domestic availability and supply prioritisation, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said India has sufficient crude inventories, while domestic LPG production has increased by nearly 40%.

“The Indian government decided to prioritise domestic consumers and hence stopped the commercial supply. Then, taking calibrated decisions, we resumed 20% supply, then 10% based on ease of doing business, then 50%, and today we have made it 70%,” she said.

‘Fuel prices have gone up worldwide, remain unchanged in India’

“Fuel prices have gone up worldwide, but petrol and diesel prices in India remain unchanged,” Sharma added.

She also assured that there is enough stock of gas and fuel and urged the citizens not to believe in rumours.

“We have sufficient crude oil. LPG, LNG, and PNG supply are all ensured. But after some rumours, we have seen long queues in front of petrol pumps in many areas,” Sharma said.

‘There is no situation like lockdown, all rumours’

Refuting the rumours of a lockdown being imposed, Sujata Sharma said, “There is no situation like lockdown. No decision has been taken, and it is not even under consideration. It’s all rumours.”

Ministry of External Affairs spokesperson Randhir Jaiswal said India’s conversation with global partners has been continuing. “The EAM is presently visiting France, attending G 7. On the sidelines, he held several meetings. Leaders discussed issues in West Asia,” he added.

Aseem R Mahajan, Additional Secretary, Gulf, said, “We lost one of our citizens in Abu Dhabi yesterday during an attack. One was injured and discharged. Total, so far, 7 citizens have been lost and one is missing.”