Now with state elections behind us, there is likely to be a revision in fuel prices. A falling rupee has aggravated the impact of higher crude prices. So it’s a tough call for the consumers as well as for the government and the oil marketing companies (OMCs) going forward.
CNBC-TV18 has learnt that the price pass on from the OMCs is going to start very quickly. However, all options are on the table, which will probably be a combination of price pass on; maybe OMCs can take a bit of a hit on their margins and also excise relief by the governments.
However, people in the know indicated that probably the price pass on will start first in terms of the impact on the consumers and the excise relief is something that the government may not be thinking about immediately; maybe they will followup later because there is no certain timeline for the Ukraine-Russia conflict to end, nobody knows where crude will actually go from here. If it goes up and the government cuts excise now then what do they do later?
Also Read: Crude oil, gold and other commodities’ closing prices
Probably, these are some of the questions which are doing the rounds in government circles, but all options on the table probably start off first with the price pass on and maybe later on following with an excise tweak.
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Watch the accompanying video of CNBC-TV18’s Sapna Das for more details.
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