Oil price slump: Centre may not hike excise duty for petro products

For 2019-20, the Centre had estimated average crude price of $55 a barrel, and for 2020-21, it has been assumed at $50 a barrel.

The Centre has ruled out an increase in excise duties on petroleum, and believes that softening global crude prices would dampen inflation, which would induce the Reserve Bank to cut policy rates.

“We are not in favour of an excise duty hike as that would add to inflationary pressures for the end-users. Softening inflation due to oil prices would increase consumers comfort,” a top government official said.

“The crude oil prices have led to bond yields also coming down. This will also have a counter-inflationary impact, and could lead to a situation which is conducive for a rate cut,” the