In a significant relief measure for consumers, the Government of India has sharply reduced excise duties on petrol and diesel, aiming to cushion the impact of rising global fuel prices triggered by geopolitical tensions in West Asia.
Petrol Duty Cut:
Special additional excise duty reduced from ₹13/litre to ₹3/litre
Diesel Duty Cut:
Duty slashed from ₹10/litre to ₹0 (nil)
Additional Relief:
Overall central excise duty reduced by ₹10/litre on both petrol and diesel for domestic consumption
Export Duties Introduced:
Diesel exports: ₹21.5/litre
ATF (Aviation Turbine Fuel) exports: ₹29.5/litre
Union Finance Minister Nirmala Sitharaman stated that the move is aimed at protecting Indian consumers from global volatility:
“In view of the West Asia crisis, the central excise duty on petrol and diesel for domestic consumption has been reduced by ₹10 per litre each. This will provide protection to consumers from rise in prices.”
She further emphasized that Prime Minister Narendra Modi has consistently prioritized shielding citizens from fluctuations in essential commodity prices.
Global Context: Rising tensions in West Asia have pushed crude oil prices higher, threatening domestic fuel price stability.
Consumer Relief: The duty cuts are expected to reduce retail fuel prices or at least prevent steep hikes.
Supply Security: Export duties on diesel and ATF aim to ensure adequate domestic availability.
Likely cooling effect on inflation, especially transport and logistics costs
Relief for sectors heavily dependent on fuel, including aviation, agriculture, and logistics
Signals proactive fiscal intervention to stabilize domestic markets
The government confirmed that Parliament has been duly notified about the changes, ensuring transparency in fiscal policy adjustments.
