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Finance Ministry to reassess current excise levels as OMCs incur heavy losses

The discussion has taken place at a time when benchmark Brent crude price has surged past $105 a barrel for the first time since 2014 after Russia's attack on Ukraine exacerbated concerns about disruptions to global energy supply.

February 24, 2022 / 05:10 PM IST

The Prime Minister’s Office, the Union Finance Ministry, and the Oil Ministry held detailed talks on February 24 to discuss the current global oil prices, which have jumped in the backdrop of the crisis in Ukraine following Russia’s invasion.

The Prime Minister’s Office advised the Finance Ministry to reassess the current excise levels as oil marketing companies are at present absorbing losses at Rs 10 lakh per day on petrol and diesel, CNBC-TV18 reported.

The Oil Ministry informed the PMO and the Finance Ministry at the meeting held today about the losses being incurred by the OMCs.

The Finance Ministry will be doing an internal analysis on how much excise hit can be absorbed by the government. Notably, no decision has been reached on any excise duty cut yet.