The Centre on Friday reduced excise duties on petrol and diesel, offering relief to oil marketing companies (OMCs) amid rising global crude prices.
In a notification issued on Thursday, the Union Ministry of Finance reduced the excise duty on petrol to ₹3 per litre from the earlier ₹13 per litre, while the duty on diesel was cut to nil from ₹10 per litre. The ministry said that these reductions have come into effect immediately. The government also imposed a windfall tax of ₹21.5 per litre on diesel exports.
The move comes against the backdrop of a global energy crisis triggered by the ongoing conflict involving the United States, Israel, and Iran, and the resulting blockade of the Strait of Hormuz by Tehran. The strategic waterway accounts for nearly one-fifth of the world’s crude oil and gas shipments, estimated at 20–25 million barrels per day. Prior to the conflict, India sourced around 12–15 per cent of its crude oil requirements through this route.
Despite the duty cuts, retail prices of petrol and diesel remain unchanged for now.
The government has also introduced a Special Additional Excise Duty on Aviation Turbine Fuel (ATF), with effective exemptions bringing the rate to ₹29.5 per litre. These changes came into effect from March 26.
Earlier, the Ministry of Petroleum and Natural Gas assured that fuel supply across the country remains stable, urging citizens not to panic or believe rumours. The ministry stated that all retail fuel outlets are operating normally and that there are adequate stocks of petrol and diesel available nationwide.
“All refineries are operating at high capacity, with sufficient crude inventories to ensure uninterrupted supply,” the ministry said, adding that domestic LPG production has also been increased to meet consumption needs.
Reports of panic buying in some areas were attributed to misinformation, with authorities reiterating that there is no shortage of fuel in the country.
(ANI)
