New Delhi, Mar 27: In a major relief to consumers amid surging global crude oil prices, the Centre on Friday slashed excise duty on petrol and diesel by Rs 10 per litre each, bringing the duty down to Rs 3 per litre on petrol and zero on diesel.
The move is aimed at cushioning the impact of rising international oil prices triggered by the ongoing West Asia crisis, which has disrupted supply chains and pushed fuel rates upward across global markets.
The government said the decision reflects its commitment to protecting consumers from price shocks at a time when several countries have raised fuel prices in response to the global energy crunch.
In addition to the excise cut, the Centre has provided exemptions on duties for fuel exports and supplies to foreign-going aircraft. It has also rescinded a 2022 notification and granted customs duty relief on imported aviation turbine fuel (ATF) to support the aviation sector.
Officials said the reduction in duties is expected to stabilise domestic fuel prices and ease inflationary pressures, particularly in transport and essential commodities.
The decision comes against the backdrop of heightened geopolitical tensions involving the US, Israel and Iran, and concerns over disruptions in the Strait of Hormuz — a key global oil transit route.
Oil marketing companies (OMCs) are expected to absorb part of the reduction to offset mounting losses due to elevated crude prices. Industry estimates suggest OMCs are currently incurring losses of around Rs 48.8 per litre on fuel sales.
Meanwhile, global oil prices showed signs of easing, with Brent crude futures falling 2.29 per cent to $105.53 per barrel, while US WTI futures declined 2.54 per cent to $92.08 in early trade.
The government on Thursday maintained that India’s petroleum and LPG supply remains fully secure and under control, urging citizens not to fall prey to what it termed a “deliberately mischievous, coordinated campaign of misinformation” aimed at creating panic.
Meanwhile, Union Home Minister Amit Shah said the excise duty cut would provide much-needed relief to citizens amid global fuel shortages triggered by the West Asia crisis. In a post on X, he said that while many nations have hiked petrol and diesel prices, the Modi government’s decision underscores its people-centric governance, and lauded Prime Minister Narendra Modi for the move.
Union Finance Minister Nirmala Sitharaman on Friday said the Centre’s decision to slash excise duty by Rs 10 on petrol and diesel was aimed at protecting citizens from the impact of rising global crude oil prices, asserting that the government has chosen to absorb the burden rather than pass it on to consumers.
Addressing the media, Sitharaman said the move reflects Prime Minister Narendra Modi’s clear policy approach of ensuring price stability and adequate fuel supply across the country.
“The prices have been reduced to ensure that there is no burden on the people. While oil prices are rising in foreign countries, two key points were focused on in the Prime Minister’s approach: first, petrol and diesel prices should not rise in the country; second, there should be ample supply within the country to prevent any shortage,” she said.
The Finance Minister emphasised that the government is taking proactive steps to maintain stability in domestic fuel markets despite volatility in international crude prices. She noted that the excise duty cut would ensure that oil marketing companies continue to receive support, enabling them to maintain supply without passing on increased costs to consumers.
