Ministry not ruling out excise tax cut extension

The Finance Ministry has not eliminated the possibility of extending the period set for the reduction of the diesel excise tax, says a ministry source who requested anonymity.

The source said the impact of the Russia-Ukraine war resulted in a sharp spike in global oil prices to $120-130 per barrel during the start of the war.

The price later fell to around $105 per barrel, which should be the peak level, with additional decreases likely, said the source.

The source said the ministry has yet to decide whether to extend the period covering the reduction in the excise tax on diesel beyond its scheduled expiry date of May 20 as the crude oil price situation may ease before that date. This would mean the government may not have to step in again to subsidise the diesel price.

If the…