India government announced a cut of Rs 10 per litre in central excise duty on petrol and diesel for domestic use. It also impose new export duties on petroleum products. It protect customers from a sharp rise in global crude oil prices caused by the ongoing West Asia crisis.
India cut fuel duties by Rs 10 per litre
Finance Minister Nirmala Sitharaman shared this decision on social media. She said that the duty reduction meant to protects consumers from increasing fuel costs. She emphasized that under PM, the government tried to protect citizens from fluctuations in global supply chains.
In addition to the excise cut, the government set an export duty of Rs 21.5 per litre on diesel and Rs 29.5 per litre on aviation turbine fuel (ATF). This step aims to maintain sufficient domestic supply as international prices rise.
Parliament informed of these changes
Petroleum Minister Hardeep Singh Puri noted that global crude prices rise over the past month. It rise from about $70 per barrel to $122 per barrel. This increase led to significant fuel price spikes worldwide. He mentioned that petrol and diesel prices went up by 30 to 50% in Southeast Asia. It is around 30% in North America, 20% in Europe, and as much as 50% in some African regions.
Puri said that the government choose between passing on the full impact of these price increases to consumers or absorbing some of the cost through lower tax revenues. He added, “The India government has chosen to bear the burden on its finances to protect citizens.” He mentioned that oil marketing companies facing considerable losses. It estimates at around Rs 24 per litre on petrol and Rs 30 per litre on diesel.
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