In a significant move aimed at shielding consumers from rising fuel costs, the Central government has reduced the excise duty on petrol and diesel by ₹10 per litre each for domestic consumption. The decision comes against the backdrop of escalating tensions in West Asia, which have triggered volatility in global energy markets.
Announcing the decision in a social media post, Union Finance Minister Nirmala Sitharaman said the step was taken to protect citizens from a potential surge in fuel prices. She emphasized that the government remains committed to ensuring price stability for essential commodities, especially during periods of global uncertainty.
The reduction in excise duty is expected to bring immediate relief to consumers, as fuel prices directly impact household budgets and transportation costs. Lower fuel prices can also help ease inflationary pressures across sectors, given the critical role of petrol and diesel in logistics and supply chains.
Alongside the duty cut, the government has introduced export duties to ensure sufficient domestic availability of key petroleum products. A duty of ₹21.5 per litre has been imposed on diesel exports, while aviation turbine fuel (ATF) will attract an export duty of ₹29.5 per litre. These measures are aimed at discouraging excessive exports and prioritizing domestic needs during a period of constrained global supply.
Sitharaman noted that the government, under the leadership of Prime Minister Narendra Modi, has consistently taken proactive steps to cushion citizens from fluctuations in global markets. She reiterated that maintaining a balance between domestic supply and international trade remains a key policy priority.
The West Asia crisis has once again highlighted India’s vulnerability to global oil price shocks, as the country imports a significant portion of its crude oil requirements. In such a scenario, fiscal interventions like excise duty cuts play a crucial role in stabilizing the domestic economy.
The latest measures reflect the government’s dual strategy of offering immediate relief to consumers while ensuring long-term energy security through controlled exports and adequate domestic supply.
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