After leaving the excise duty on petrol and diesel unchanged in the Union Budget 2022-23, Finance Minister Nirmala Sitharaman said that any decision on price change, especially for petrol, would be taken by the oil marketing companies (OMCs).
As international crude oil price crossed $90 a barrel, the general expectation was that the government could cut excise duties on petrol and diesel in the Budget to give respite to consumers. Excise duty and value added tax on fuel accounts for 40-50% of the price and is a major source of revenue for the Centre and state governments.
In an exclusive interview to Network18, the finance minister said that petrol and diesel prices is “in the hands of the oil marketing companies.”
The oil marketing companies (OMCs) -- Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation- change the price of fuel sold at retail pumps every fortnight to align it with the international rates.
The central government had last cut excise duty on November 4, 2021 to provide relief from prices as crude oil was around $80 a barrel at the time. Since then crude oil prices have gone up significantly but the OMCs have not been able to pass on the rise in cost completely to the customers, leading to under-recoveries. They have left price of petrol and diesel unchanged for the 89th day on February 2, the longest ever period thus far. Petrol cost Rs 95.41 a litre in Delhi and diesel was priced at Rs 86.67 a litre.
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