Oil bonds aim to ‘insulate’ customers: Experts see ‘scope for fuel cess cuts’

The government’s argument that it cannot reduce taxes on fuel due to the burden of past oil bonds is not convincing and the Centre has the wherewithal to provide relief to consumers from high prices of petrol and diesel, economists said. Congress leader and former Finance Minister P Chidambaram told The Indian Express that Finance Minister Nirmala Sitharaman has presented a “hollow argument” as subsidies were financed through borrowings by the UPA government, and there is scope for the present government to provide relief to consumers.

“What the FM has argued doesn’t make any sense. They have collected more than Rs 15 lakh crore in last five years from taxes (on fuel).