Duty cut may soften blow as Rs 3 fuel price hike looms

Duty cut may soften blow as Rs 3 fuel price hike looms
An empowered group of Ministers (EGoM) is likely to meet on 11 May'2011 to discuss a proposal to increase auto fuel prices by up to Rs 3 per litre.

At the same time, petroleum minister Jaipal Reddy is also emphasizing on reduction in customs and excise duty on petroleum products and crude oil for the moderation in price hike by the oil marketing companies (OMCs) of India.

A Government official quoted, "Both the price hike issue and the reduction in duties on oil and oil products is part of the EGoM's agenda this week,"

He further added, "As it is not possible to pass on a hefty increase in auto fuel prices, especially diesel - which directly impacts inflation - the finance ministry has to look at reducing duties."

Read more about: oil and gas, diesel
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