The Telegraph
Since 1st March, 1999
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Naik to seek duty cut on petrol, diesel

New Delhi, Sept. 19 (PTI): Petroleum minister Ram Naik will seek a two per cent cut in excise duty on petrol and diesel to insulate domestic consumers from any steep increase in prices necessitated due to the spurt in global crude oil prices.

I am ceased of the issue. Finance ministry will make duty adjustments if crude oil prices rise sharply, Naik said here.

Naik will meet finance minister Jaswant Singh later this month to build a case for duty cut that would be revenue- netural as the loss of revenue would be offset by the rise in prices.

After the dismantling of administered pricing mechanism, while the state-owned retailing firms were given freedom to align their costs with international selling prices of products every 15 days, the finance ministry was to consider every three months reduction or increase in duties in step with increase or decrease in crude oil prices.

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