The finance ministry may cut the excise duty on petroleum products if international benchmark Brent crude prices continue to rule over $34-35 a barrel.

Uncertainty over a war in the Persian Gulf has led to a sharp rise in the average Brent prices to $33.57 a barrel in March, compared to around $23.48 a barrel in 2001-02.

Revenue department officials said a decision would be taken in the next few days.

"Any excise duty cut involves a cost to the exchequer. However, it will translate into lower prices of petrol and diesel for the consumer," said an official.

He, however, ruled out any change in the Customs duty on crude.

Officials said the estimates for excise receipts for 2003-04 had budgeted for changes in the duty structure during the fiscal.

"The 11 per cent growth in excise duties projected for 2003-04 is modest and has discounted any possible changes in duty mid-course," an official said.

The ad-valorem excise duties on petroleum products vary from 14 per cent on high-speed diesel to 30 per cent on petrol.

The duty on other petroleum products is 16 per cent. The petroleum ministry has been demanding the imposition of specific duties on oil products to provide a cushion against volatility in global crude prices.

During 2002-03, the finance and petroleum ministries had decided to review the global price movement of Brent crude and its impact on the domestic prices of petroleum products.