The government is unlikely to slash excise duty on petrol and diesel any time soon as rates have not hit levels that could trigger such a move, according to Economic Affairs Secretary Subhash Chandra Garg.

State oil firms have not revised petrol and diesel price for almost a week now. This after petrol price hit a 55-month high of Rs 74.63 a litre and diesel rates climbed to a record high of Rs 65.93, media reports said.

Garg reportedly said oil prices can impact the governments fiscal maths if they result in a spike in rates of domestic cooking gas (LPG) – the only commodity that is subsidised now.

“Otherwise there is no direct subsidy any longer,” he said. “Indirect subsidy/impact comes, if crude oil prices reach a certain level (and) there might by some rethink about excise duty etc. Thats not happened so far,” PTI quoted him as saying.

Without indicating the level of oil prices that could trigger an excise duty cut, he reportedly said, “If the level (of prices now) does not go up, there is no reason (for excise duty cut).”

Every rupee cut in excise duty on petrol and diesel will result in a revenue loss of Rs 13,000 crore, the report said.

Asked if there is any thinking of cutting excise duty or asking PSU oil firms to hold rates till elections in Karnataka, he said, “We have not seen anything (on it).”

The central government levies Rs 19.48 a litre of excise duty on petrol and Rs 15.33 per litre on diesel. State sales tax or VAT vary from state to state. In Delhi, VAT on petrol is Rs 15.84 and Rs 9.68 a litre on diesel, reported PTI.

The government is hoping that geopolitical tensions would ease and US shale oil would help ease oil prices that are near three-year high, the report said.