The government on Tuesday said it is keeping a close watch on evolving geopolitical developments and would make ‘calibrated interventions’ to keep fuel prices under control to safeguard the interest of the common man. Minister of state for finance Pankaj Chaudhary said crude petroleum and natural gas, fuel & power subgroup in the wholesale price index (WPI) is directly related to the fluctuations in the prices of crude oil.
Due to the ongoing Russia-Ukraine war, crude oil prices had touched $140 a barrel early last week. The prices have cooled since then and are now around $102 a barrel.
“Consequently, retail prices of petrol and diesel sobered down across the country. In order to safeguard the interests of the common man, retail prices of diesel and petrol have not been revised since November 2021, despite the increase in global crude oil prices,” Chaudhary said. Pankaj Chaudhary said crude petroleum and natural gas, fuel & power subgroup in the Wholesale Price Index (WPI) is directly related to the fluctuations in the prices of crude oil. To a question in the Rajya Sabha on whether the government will cut excise duty to keep fuel price escalation due to the Ukrainian crisis in control, Chaudhary said the public sector oil marketing companies (OMCs) take appropriate decisions on pricing of petrol and diesel in line with their international product prices, exchange rate, tax structure, inland freight and other cost elements etc.