Govt reduces excise duties on petrol, diesel by Rs 10/litre each
According to a Reuters report, excise duty on petrol has been cut from Rs 13 to Rs 3 per litre, while diesel duty has been reduced from Rs 10 to zero.
The government has reduced the special additional excise duties on petrol and diesel amid the global energy crisis due to the ongoing US-Israel war on Iran and Tehran’s moves to restrict shipping through the Strait of Hormuz.
According to Reuters report, the excise duty on petrol has been reduced from Rs 13/litre to Rs 3/litre. The excise duty on diesel has been slashed from Rs 10/litre to nil.
The tax cut is expected to bring down petrol and diesel prices in the country.
The Strait of Hormuz is a vital global energy artery, through which roughly a fifth of the world’s seaborne oil and gas flowed before the conflict—about 20–25 million barrels of crude and nearly 10 billion cubic feet of gas each day.
It is a crucial supply route for India, with an estimated 40–50% of its crude imports—around 2.2 to 2.8 million barrels per day—traditionally passing through the corridor.
Nayara fuel price hike
The government move follows a sharp hike in fuel prices by Nayara Energy, the country’s largest private fuel retailer. It raised petrol prices by Rs 5/litre and diesel by Rs 3/litre. Nayara Energy, which operates 6,967 of India’s 102,075 petrol pumps, decided to pass on part of the increase in input costs to consumers, two sources with direct knowledge of the matter told news agency PTI.
Fuel retailers in India have been under pressure as retail prices for petrol and diesel remained unchanged even as global crude surged sharply – rising by nearly 50% since February 28, when US-Israel strikes on Iran escalated tensions and disrupted oil markets.
India’s crude stock
The oil ministry on Thursday said India has sufficient crude supplies for the next 60 days, with higher purchases from western sources offsetting disruptions caused by the closure of the Strait of Hormuz.
“Despite the situation at the Strait of Hormuz, India is today receiving more crude oil from its 41-plus suppliers across the world than what was previously arriving through the Straits. High volumes available in international markets — especially from the western hemisphere — have more than compensated for any disruption,” the ministry said.
The government also noted that every refinery is running at over 100% utilisation with crude oil supplies for next 60 days having already been tied up by Indian oil companies. “There is no supply gap,” the ministry said
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