The Petroleum Minister Dharmendra Pradhan has announced that the Indian government currently has no proposal on fuel tax reduction.
The petrol prices in Delhi have made a new record high on February 10 at Rs 87.60 per litre.
Also, the prices of diesel too supported this rally at Rs 77.73 per litre. Both petrol and diesel prices are soaring after the price hike of 30 paise and 25 paise each respectively.
Market was hoping for a further reduction in taxes after the recent hike. But, this seems to be out of the league as of now. The petroleum ministry has already reached the finance ministry regarding the same.
Currently, there is no as such proposal which will reduce the fuel taxes on petrol and diesel.
Pradhan quoted that the taxes are moreover increased or decreased on the basis of several factors. These factors are mainly dependent upon the market situation and also government requirement.
Meanwhile, the government has also increased the excise duty in March. The crude oil prices were down at that time and fell to the lowest of $19 per barrel in April.
Pradhan also added that the international crude price is also a fuel price indicator which is benchmarked according to international product prices.
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