Crude oil price fell below $60 a barrel — unexpectedly and in less than two months from $86.74. At the beginning of October, when oil prices were hovering around $85 a barrel, little did anyone, let alone the Indian government, know that oil will take a sudden u-turn.
However, the government is in Catch-22 position as it announced an excise duty cut of Re 1 a litre on both petrol and diesel on October 4, which hurt its fiscal position in a poll year. With the oil prices falling drastically now, the government is now considering hiking excise duty by Re 1- Rs 2 a litre on fuel, The Indian Express reported.
According to the national daily, the 30% fall in crude oil prices in the last two months has given room to the government to hike excise duty by Rs 1-2 per litre on petroleum products. Read More
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