Centre Cuts Excise Duty On Petrol, Diesel By Rs 10 As Global Oil Prices Surge

The Centre on Friday reduced excise duty on petrol and diesel by Rs 10 per litre each to mitigate the impact of rising global crude prices. The revision brings excise duty on petrol down to Rs 3 per litre, while diesel now attracts zero duty.

The government also granted duty exemptions on fuel exports and supplies to foreign-bound aircraft. It withdrew a 2022 notification and extended customs duty relief on imported aviation turbine fuel (ATF), aiming to support the aviation sector.

The decision comes amid concerns over potential price escalation triggered by the global energy crisis.

The tension intensified due to the US-Israel conflict with Iran and the disruption of the Strait of Hormuz, a key global oil route.

Oil marketing companies are expected to absorb the duty reduction to offset financial strain.

Reports indicate that these firms currently face losses of nearly Rs 48.8 per litre due to elevated international crude prices.

Global oil markets showed a downward trend. Brent crude futures declined by 2.29 per cent to $105.53 per barrel, while US WTI crude dropped 2.54 per cent to $92.08.

The government reiterated that India’s petroleum and LPG supply remains secure and fully under control.

Officials dismissed rumours of shortages as misleading and intended to create unnecessary panic.

Authorities confirmed that India holds around 74 days of total reserve capacity, with approximately 60 days of active stock available, including crude and refined products. They also confirmed that authorities have already secured procurement for the next two months.

Officials assured that all retail outlets maintain adequate supplies and emphasised that there is no shortage of fuel across the country.

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