And oil producers are now getting paid worldwide rates in dollar terms even when they produce oil from Indian fields.
The revenues so collected would be used to pay fuel retailers so that they absorb spikes beyond the threshold levels, they said.
The centre may also give some relief in excise duty rates to give immediate relief to consumers. Additionally, states too would be asked to cut sales tax or VAT to show a visible impact on retail prices.
A similar cess, like the windfall tax, was considered in 2008 when prices were on the rise. Upstream oil companies can not bear more given the burden of a 20% cess on crude, while reduction in duty will hit the exchequer.
"Today when the oil price is around $80 per barrel, petrol price has reached a high of ₹76.57 per litre in Delhi and this has led one to wonder why petrol prices in India are shooting up when global prices have fallen (by $52/b, 2008 versus 2018)", Dr. Shenoy, a consumer activist and contributor to various journals and newspapers on petroleum and energy issues, said. The officials of the finance ministry issued a statement regarding the same. As per the Raghuram Rajan Commitee report, Odisha was one of the least developed States when Congress led UPA Government was at the Centre for 10 en years. He is telling this to suppress the central government's inability to deal with the situation. Levying of taxes on the consumers for more than the value of the product itself is not, at all justified on the part of Modi government which promised for Achchey Din during election campaign. It is learnt that Indians living on the borders of the above two countries draw their requirement of petrol and diesel from across the borders at nearly half the rates.
The government raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October previous year by Rs2 a litre. States may not be willing to allow that because taxes on fuel account for 11% of their overall tax revenue.