Following is the text of the statement of Shri P.V. Bhide, Secretary, Department of Revenue, Ministry of Finance made at the press conference held here today:

"Ministry of Petroleum and Natural Gas has requested reduction in customs duty and excise duty on crude oil and petroleum products in order to enhance the realisation for Oil Marketing Companies (OMCs).

Although there are tremendous demands on the revenue, especially for programmes and schemes in the social sector, it has been decided to make certain duty changes in customs and excise. These duty changes will result in an estimated loss of revenue of about Rs.22,660 crores for the remaining ten months of this fiscal year.

The following duty changes have been notified today;

(a) Reduction in customs duty on crude from 5% to NIL.

(b) Reduction in customs duty on HSD and petrol from 7.5% to 2.5%.

(c) Reduction in customs duty on other petroleum products from 10% to 5%.

(d) Reduction in excise duty on HSD and petrol by Re. l per litre."

Customs and excise duty reductions on petroleum aim to boost oil company realisations while affecting fiscal revenue. Reduction of customs and excise duties on crude oil and petroleum products was notified to enhance Oil Marketing Company realisations. The changes remove customs duty on crude, lower customs duty on high-speed diesel and petrol and on other petroleum products, and reduce excise duty on high-speed diesel and petrol by one unit per litre; the statement notes a substantial estimated revenue loss for the remainder of the fiscal year.