India Cuts Excise Duty on Petrol, Diesel by Rs 10 per Litre Amid West Asia Crisis
The Centre has cut excise duty on petrol and diesel by Rs 10 per litre amid the West Asia crisis, reducing petrol duty to Rs 3 and diesel to zero to shield consumers and support oil marketing companies. Export duties on diesel and ATF have also been imposed to ensure domestic availability.
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In a move aimed at shielding consumers from rising fuel prices triggered by the ongoing crisis in West Asia, the Government of India has reduced central excise duty on petrol and diesel by Rs 10 per litre each for domestic consumption.
As a relief for oil marketing companies, the government has sharply lowered the effective excise duty burden. The excise duty on petrol has been reduced from Rs 13 per litre to Rs 3 per litre, while the duty on diesel has been cut from Rs 10 per litre to zero.
Announcing the decision on social media, Finance Minister Nirmala Sitharaman said the step is intended to protect citizens from volatility in global energy markets and rising costs of essential commodities. She added that Prime Minister Narendra Modi has always ensured that citizens are protected from vagaries of supply and costs of essential goods.
In a parallel move to ensure domestic availability, the government has imposed export duties on key petroleum products. Diesel exports will now attract a duty of Rs 21.5 per litre, while aviation turbine fuel (ATF) exports will face a levy of Rs 29.5 per litre.
Backing the move, Petroleum and Natural Gas Minister Hardeep Singh Puri said the government had opted to absorb the financial burden rather than pass it on to consumers amid the global energy crisis. He emphasized that the decision was taken to maintain price stability and protect citizens from surging international fuel costs.
"Government has taken a huge hit on it taxation revenues to ensure very high losses of oil companies (approximately 24 Rs/litre for petrol and 30 Rs/litre for diesel) at this time of sky high international prices are reduced," Puri said.
The duty cut comes amid a sharp surge in international crude oil prices following escalating geopolitical tensions in West Asia, including disruptions in key supply routes such as the Strait of Hormuz.
The export duties are aimed at discouraging excessive overseas shipments and ensuring sufficient supply in the domestic market, particularly at a time when global uncertainties threaten supply chains.
