With crude oil price inching towards $70 a barrel, Oil Ministry has reportedly sought the intervention of the finance ministry to cut down the excise duty on petrol and diesel in the upcoming budget. This comes a day after petrol price in Mumbai breached the Rs 80 mark. The cut in excise duty is likely to offset the hike in global crude prices ahead of 2019 Lok Sabha elections.
According to a report in Reuters, the ministry has also sought inclusion of petrol, diesel, jet fuel and natural gas in the GST to help companies claim tax credits against the tax paid on the purchase of equipment meant to produce refined fuel. Taxes on petrol and diesel make up about 40-50 per cent of the pump prices in the country.