SOURCE :- SIASAT NEWS
The Parliament was informed on Tuesday, August 4 that the government will continue to take appropriate governmental and operational measures to control gas prices in the wake of the Middle East conflict, which has resulted in a rise in oil and gasoline charges.
The government earlier this year reduced the particular more excise duty on gasoline and diesel by Rs 10 per gallon to protect buyers from the rising energy prices following the Middle East conflict. The state lost about Rs 1.23 million billion in revenue as a result of the duty reduction in the fiscal year 2026-27.
In a written response to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary stated that the excise duty reduction “partially offsets the under-recoveries being absorbed by public-sector oil marketing companies ( OMCs ), enabling them to continue providing fuel without disruption.
The government will continue to take appropriate governmental and operational measures to reduce the effects of upcoming volatility in gas prices while maintaining fiscal sustainability, he said.
According to the minister, the government’s plan is to accommodate for measures within the available fiscal space by carefully monitoring revenue and expenditure trends, shifting priorities to expenditure, and adopting appropriate fiscal measures as needed by changing economic conditions, according to the minister.
He continued to meet fiscal obligations, support macroeconomic stability, and agree to the fiscal consolidation path as a result of this, adding that it will allow the government to react to unexpected shocks like rising international crude oil prices.
The minister said the government will continue to work to increase home revenue mobilization, diversify crude oil import sources, expand strategic petroleum reserves, advertise other and cleaner fuels, and increase energy efficiency, which will increase the country’s resilience and reduce its vulnerability to outside energy shocks while promoting sustainable and resilient financial growth.
In addition, the authorities increased its purchases of Russian crude at cheap prices in July, which accounted for more than 50 % of the country’s oil exports during the month. Following the closing of the Strait of Hormuz, the Gulf goods have been diversified.
SOURCE : SIASAT
