India — the world’s third-largest consumer of fossil fuel — may slash taxes on petrol and diesel to save state-run energy firms from bleeding as international oil prices soared an eight-year high amid Russian military operations against Ukraine, and may prepare an incentive package to attract private investments in augmenting domestic production of oil and gas, three people aware of the matter said.
The government, which is committed to ensuring energy supplies to its people at an affordable rate, is keeping a vigil on the geopolitical developments and exploring all options, including a reduction in central excise on fuels if needed, they added, requesting anonymity.
So far, the common man is unaffected as state-owned oil marketing companies have not raised petrol and diesel prices since November 4 (on account of the ongoing assembly election cycle, which will end on March 7) even as they are now losing about ₹8-10 per litre on the sale of the two fuels, one of them said. “Enough cushion is available,” he added.
