"Good decision in challenging times": Union Minister Dharmendra Pradhan hails excise duty cut on fuels
New Delhi, March 27
Union Minister Dharmendra Pradhan on Friday hailed Prime Minister Narendra Modi after the Centre slashed excise duty on petrol and diesel, highlighting its positive impact on the public.
Speaking outside the Parliament, Pradhan told reporters, "I thank the Prime Minister on behalf of the nation. The Prime Minister always makes good decisions during challenging times, keeping in view the benefit of the public...This is a very good decision of the government."
The remarks come after the Central government reduced excise duty on petrol to Rs 3 per litre and brought it down to zero for diesel, as per a Gazette notification issued under the provisions of the Central Excise Act, 1944. Additionally, a windfall tax of Rs 21.5 per litre has been imposed on diesel exports.
The decision follows escalating tensions in West Asia, particularly the ongoing conflict involving the United States, Israel, and Iran, which has led to a blockade of the Strait of Hormuz--a crucial route that handles nearly one-fifth of the world's crude oil supply. Before the crisis, India sourced around 12-15% of its oil imports through this route.
While the duty cut is expected to ease pressure on oil marketing companies facing losses due to surging crude prices, retail prices of petrol and diesel have remained unchanged so far.
The government has maintained that fuel supplies across the country remain stable.
The Ministry of Petroleum and Natural Gas, in an official statement, assured that "all retail outlets are operating normally across the country" and that there are "adequate stocks of petrol and diesel available at all petrol pumps." It also urged citizens not to engage in panic buying amid circulating rumours.
Officials added that refineries are functioning at high capacity with sufficient crude inventories, and domestic LPG production has been ramped up to meet demand.
— ANI
Reader Comments
Appreciate the move, but the article says retail prices are unchanged. So when will we actually see relief at the pump? The excise duty was increased so much during COVID, this feels like a very small correction. The windfall tax on exports is a smart parallel move though.
Global situation is very tense. Strait of Hormuz blockage is a big worry for our oil supply. Government is right to take pre-emptive steps to secure supplies and ease pressure. Jai Hind!
Interesting to see India's policy response. The windfall tax on diesel exports is a clever way to discourage companies from selling abroad for higher profit and keep supply domestic. Many countries are grappling with similar energy security issues.
The assurance on LPG production is most important for my family. My mother was worried about cylinder prices and availability. Hope the government keeps a close watch so that middle-class households are not burdened.
While the intent is good, this feels reactive. We need a long-term strategy for energy independence - more focus on renewables and electric vehicles. Reducing duty is a temporary fix. The finance ministry must also think about the revenue loss from this cut.
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