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Modi Govt Cuts Fuel Excise Duty, Amit Shah Hails Relief for Citizens

Union Home Minister Amit Shah praised the Modi government's decision to significantly reduce excise duty on petrol and diesel, calling it a people-centric move that provides relief amid a global fuel crisis. The duty was cut by Rs 10 per litre, bringing petrol duty to Rs 3 and diesel to zero, to cushion the impact of soaring global oil prices. The reduction comes against the backdrop of a supply crisis triggered by West Asia tensions, including the US-Israel conflict with Iran. The government has assured that India's petroleum supply is secure and has warned against misinformation campaigns causing panic.

Key Points: Fuel Excise Duty Cut Brings Relief, Says Amit Shah

  • Excise duty slashed by Rs 10/litre
  • Relief amid global fuel shortage
  • Govt cites people-centric governance
  • OMCs absorbing losses
  • Global oil prices decline
2 min read

Modi govt's decision to cut excise duty on fuel brings much-needed relief to citizens: Amit Shah

Amit Shah praises Modi govt's excise duty cut on petrol & diesel, offering relief amid global fuel crisis triggered by West Asia tensions.

Modi govt's decision to cut excise duty on fuel brings much-needed relief to citizens: Amit Shah
"the Modi government's decision to cut excise duty on fuel brings much-needed relief to citizens. - Amit Shah"

New Delhi, March 27

Union Home Minister Amit Shah on Friday said that amid global fuel shortages triggered by the West Asia crisis, which have pushed prices higher worldwide, the Modi government's decision to cut excise duty on fuel offers much-needed relief to citizens.

Taking to social media platform X, Amit Shah said, "As the world is reeling under fuel shortages amid the West Asia crisis, driving up prices globally, the Modi government's decision to cut excise duty on fuel brings much-needed relief to citizens."

He added, "While many nations have hiked diesel and petrol prices, Modi govt's decision to reduce excise duty underscores its people-centric governance and sensitivity-led decision-making. Kudos to PM Shri Narendra Modi Ji for this decision."

Meanwhile, the government 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 a.m.

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.

- IANS

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Reader Comments

S
Sarah B
While the cut is welcome, it feels like a small step. The global situation is volatile, and we need a long-term strategy for energy security. Reducing dependence on imports should be the real focus.
R
Rohit P
Good move by Modi ji. In these tough times when other countries are increasing prices, our government is reducing them. This is true 'Jan Kalyan' (public welfare). The relief for diesel is especially helpful for transport and farmers.
P
Priya S
I appreciate the relief, but let's be honest, the prices are still very high compared to a few years ago. Also, what about the OMCs absorbing losses? Won't that affect their operations and eventually us? The economics needs to be clearer.
M
Michael C
Sensitive decision in a difficult global climate. The exemption for aviation fuel is also smart to keep travel costs in check. Hope the global prices continue to soften.
K
Kavya N
Relief for sure, but what about the states? They need to reduce VAT now to pass on the full benefit to citizens. The central cut alone won't bring prices back to normal. #StatesShouldActToo

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