As crude oil prices ease, govt to wait and watch on excise duty cut

With crude prices easing after spiking to a 14-year high in recent weeks, the government is of the view that an immediate cut in excise duty on fuel is not required. Senior Finance Ministry officials said it may be too early to react to a spike in prices which may not last for long as supply concerns are expected to ease in the coming weeks amid the ongoing Russia-Ukraine conflict.

The impact of higher crude prices in recent months has been borne by oil companies, which is likely to get translated into higher retail prices in coming weeks.