The Government of India has cut the excise duty on petrol and diesel by Rs 10 per litre. This move comes as international crude oil prices have surged from around USD 70 to USD 122 per barrel in just four weeks. The rise is largely due to ongoing tensions in West Asia, disrupting energy supply chains.
Despite this change, pump prices for petrol and diesel won’t decrease. The cut in excise duty helps reduce the losses faced by major oil companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum, which have been selling fuel at prices below their cost.
Currently, oil marketing companies are losing about Rs 26 per litre on petrol and Rs 81.90 on diesel. Every day, these losses total around Rs 2,400 crore. The excise reduction alleviates some of these losses, ensuring these companies can continue supplying fuel without disruptions while keeping prices steady for consumers.
In contrast, fuel prices are climbing steeply around the world. Many countries in South and Southeast Asia have seen increases of 30 to 50 percent. North America has risen by about 30 percent, and Europe by 20 percent. India’s fuel prices have remained stable, which comes at a financial cost to the government.
Petroleum Minister Hardeep Singh Puri explained that the government faced a choice: raise prices significantly like other nations, or absorb the financial impact to protect consumers. Prime Minister Narendra Modi chose the latter, prioritizing citizen welfare over tax revenue loss.
Additionally, the government has introduced an export levy on diesel to discourage exports and ensure that domestic supply is prioritized despite rising international prices. This approach mirrors the government’s strategy since the Russia-Ukraine conflict in 2022, where they previously cut taxes to shield households from price surges.
Monitoring the global energy landscape remains crucial, and the government plans to take necessary steps to keep prices stable for Indian citizens. This ongoing support reflects a commitment to safeguard the public from market volatility.
According to recent reports, the global energy crisis is affecting many nations. The International Energy Agency has warned that the oil market might tighten further if geopolitical tensions continue. In this context, India’s approach of maintaining local fuel prices while managing international fluctuations stands out as a notable strategy.
For a deeper understanding of global oil trends and their implications, you can refer to [the International Energy Agency](https://www.iea.org/). This resource provides insights into how global events shape energy markets and prices.
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Excise duty,Government Of India,Indian Oil Corporation,Petrol Diesel
