Centre Cuts Excise Duty on Petrol, Diesel by Rs 10 per Litre

New Delhi: The Centre on Friday reduced excise duty on petrol and diesel by Rs 10 per litre each in a bid to cushion the impact of rising global oil prices. Following the revision, excise duty has been brought down to Rs 3 per litre on petrol and completely removed for diesel.

The government has also announced duty exemptions on fuel exports and supplies to foreign-bound aircraft. In addition, an earlier 2022 notification has been withdrawn, granting customs duty relief on imported aviation turbine fuel (ATF).

The move comes amid concerns of a possible price hike triggered by the global energy crisis linked to tensions involving the US, Israel, and Iran, and disruptions around the Strait of Hormuz.

Oil marketing companies (OMCs) are expected to absorb the duty cut to help offset mounting losses. These firms are currently estimated to be losing around Rs 48.8 per litre on fuel sales due to elevated global crude prices.

Meanwhile, global oil prices showed some easing. Brent crude futures slipped 2.29 per cent to $105.53 per barrel, while US WTI futures declined 2.54 per cent to $92.08 as of 8:50 am.

The government also reassured citizens that India’s petroleum and LPG supplies remain secure. The Petroleum Ministry said the country has about 74 days of reserve capacity, with around 60 days of stock currently available, including crude, product stocks, and strategic reserves.

“There is no shortage of petrol, diesel, or LPG anywhere in the country,” the ministry said, urging people not to believe misinformation creating unnecessary panic. It added that crude procurement for the next two months has already been secured, ensuring stable supply for the foreseeable future. 

With inputs from IANS