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Govt Slashes Fuel Excise Duty by Rs 10/Litre to Ease Global Price Pain

The central government has announced a significant reduction of Rs 10 per litre each in excise duties on petrol and diesel. This measure is designed to mitigate the impact of soaring global oil prices, exacerbated by geopolitical tensions in the Middle East. Concurrently, the Petroleum Ministry has strongly reassured the public that India's fuel supply is fully secure, with ample reserves for nearly two months. It dismissed circulating misinformation about shortages as a "deliberately mischievous" campaign.

Key Points: Centre Cuts Petrol, Diesel Excise Duty by Rs 10 Per Litre

  • Rs 10/litre excise duty cut on petrol & diesel
  • Customs duty relief on imported aviation fuel
  • Move aims to offset impact of global energy crisis
  • Government assures 60 days of secure fuel stocks
2 min read

Centre slashes excise duty on petrol and diesel by Rs 10 per litre each

Government reduces excise duty on petrol and diesel by Rs 10/litre each to cushion impact of surging global oil prices. Ministry assures ample fuel stocks.

"There is no shortage of petrol, diesel, or LPG anywhere in the country - Petroleum Ministry"

New Delhi, March 27

The government on Friday slashed excise duties on petrol and diesel by Rs 10 per litre each, bringing them down to Rs 3 per litre for petrol and zero for diesel, in a move aimed at cushioning the impact of surging global oil prices.

The government has also provided exemptions on duties for fuel exports and supplies to foreign-going aircraft.

Separately, the Centre has rescinded an earlier 2022 notification and granted customs duty relief on imported aviation turbine fuel (ATF).

The reduction comes amid fears of a price hike due to the global energy crisis, triggered by the US-Israel conflict with Iran and the resultant blockade of the Strait of Hormuz.

Oil marketing companies (OMCs) are expected to absorb the reduction to offset mounting losses. OMCs are currently estimated to be incurring losses of around Rs 48.8 per litre on fuel sales, largely due to elevated global crude prices.

Meanwhile, global oil prices declined, with Brent crude futures falling 2.29 per cent to $105.53 per barrel. US WTI futures also dropped 2.54 per cent to $92.08 as of 8:50 am.

The government on Thursday categorically stated that India's petroleum and LPG supply situation is fully secure and under control, calling upon citizens not to be misled by a "deliberately mischievous, coordinated campaign of misinformation" that is being carried out to spread unjustified panic.

India has 74 days of total reserve capacity, and actual stock cover is around 60 days right now (including crude stocks, products stocks and the dedicated strategic storage in caverns), even as "we are on the 27th day of the Middle East crisis", the Petroleum Ministry said, adding that all retail fuel outlets have enough supplies.

"There is no shortage of petrol, diesel, or LPG anywhere in the country," it said in a statement, adding that nearly two months of steady supply is available for every Indian citizen, regardless of what happens globally.

"Next 2 months of crude procurement has also been secured. India is completely secure for the next many months, and the quantity in strategic cavern storage becomes secondary in such a supply situation. Therefore, any representation that India's reserves are depleted or insufficient should be dismissed with the disdain it deserves," the ministry highlighted.

- IANS

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Reader Comments

R
Rohit P
Good step, but why wait for a global crisis to act? The excise duty was increased sharply when oil was cheap. The government should have a more stable, long-term policy instead of these reactive cuts. The relief for ATF and exports is also important for the economy.
A
Aditya G
The assurance about 60-74 days of fuel security is very comforting. In these uncertain times with the Middle East conflict, it's crucial that our supplies are safe. Kudos to the planning. Jai Hind!
S
Sarah B
While the duty cut is welcome, I'm concerned about the OMCs absorbing losses. They are public sector units ultimately. If they keep incurring losses, it will impact their financial health and future investments. The government needs a more sustainable solution.
K
Karthik V
Finally some action! My transport business was suffering badly. Diesel at zero excise duty will help bring down logistics costs. Hope the benefit is passed on fully and quickly to the end consumer.
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Nisha Z
The statement about a "mischievous campaign" is worrying. Instead of just dismissing concerns, the government should proactively share transparent data on stocks and procurement. Trust is built through transparency, not just assurances.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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