NEW DELHI: The government is monitoring rising crude oil prices, finance minister Nirmala Sitharaman said on Tuesday, as oil prices hit near $100 a barrel after tensions between Russia and Ukraine escalated after Moscow ordered troops into two breakaway regions in eastern Ukraine.India, which meets nearly 80 per centof its needs through oil imports, is worried about the rising crude oil prices as it could widen its oil import bill while leading to inflationary pressures.Speaking to media persons in Mumbai, where she had earlier met industry representatives in a post-budget interaction, the finance minister said that therecent fluctuations at the stock market is also due to geopolitical factors."We are watching the development and how it can impact us," she said, adding that at this moment, "the impact (of Russia-Ukraine) on our trade is yet to be felt".Whenaskedwhether the government would consider tax relief in view of the rising crude prices, said, "crude oil is a worrisome situations where we actually voiced that we wanted a diplomatic solution for the situation that is developing in Ukraine, all these headwinds on the crude.
It is one of the very important consideration.
We'll have to see how it goes.
We are keeping a watch onBrent."Ms Sitharaman further added that the government had already reduced taxation on fuel from its end, in October last year, in bid to ease the domestic fuel prices."The prime minister had cut fuel tax before Diwali in response to calls from the public.
The problem is that fuel prices are high because of global supply issues," she said, further noting that "what oil marketing companies do (with fuel prices), I cannot answer"."When we come to stage that we need to take a decision on excise duty cut on fuel prices, we will come out publicly," the finance minister added.Government had cut excise duty on petrol and diesel prices on November 4, 2021 by Rs 5 and Rs 10 respectively, which had brought down fuel prices.
Since then, rateshave not been hiked.