NEW DELHI: Rising global oil prices may push up India’s import bill by up to USD 50 billion, impacting current account deficit, but would have little affect on growth, Economic Affairs Secretary Subhash Chandra Garg said today even as he remained non-committal on cutting excise duty to the ease the burden on consumers.
The Government is watching the situation developing from oil prices hitting USD 80 a barrel — the highest since November 2014, and adequate steps will be taken, he told reporters here without elaborating.
Asked if the Government would cut excise duty on petrol and diesel, he said he has nothing to say on that front. “Just watch.”
The BJP-led Government had raised excise duty nine times — totalling Rs 11.77 per litre on petrol and Rs 13.47 on diesel — between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.
Garg parried questions on whether the Government was considering a cut in excise duty, which makes up for a fourth of retail selling price.
Asked at what levels of oil prices would the Government decide to tweak taxes, he said, “it would be difficult to give a figure”. (AGENCIES)
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