NEW DELHI: High global crude oil prices beyond $90 a barrel could lead to a revenue loss of Rs 95,000 crore to Rs 1 lakh crore in fiscal year 2022-23, a report by the economic research wing of the country’s largest lender SBI said on Friday.
It said that if the government reduces the excise duty on petroleum products further by Rs 7 per litre in March, when the state elections are over, and prevents the prices of petrol and diesel from rising, then the Centre’s excise duty loss will be Rs 8,000 crore for a month.
“If we assume that the reduced excise duty continues in the next fiscal and assuming petrol and diesel consumption grows 8-10% in FY23, then the revenue loss to the government would be Rs 95,000 crore to Rs 1 lakh crore for FY23,” according to the SBI Research Ecowrap.
