Fuel Excise Duty Cut in India: Will Petrol and Diesel Prices Finally Drop for Consumers?
In a significant move aimed at providing relief to consumers, the Government of India has reduced the special additional excise duty on petrol and diesel amid global geopolitical tensions and fluctuating oil markets.
According to reports, the excise duty on petrol has been slashed from ₹13 per litre to ₹3 per litre, while the duty on diesel has been reduced from ₹10 per litre to zero. This major reduction is expected to ease fuel prices in the coming days, offering much-needed relief to the public.
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The decision comes shortly after Nayara Energy, India’s largest private refinery, announced a price hike last Thursday. Petrol prices were increased by ₹5 per liter, and diesel by ₹3 per liter. In response, the government intervened by cutting excise duties by ₹10 per litre on both fuels, signaling a strong effort to stabilize the domestic market.
The move is also linked to ongoing tensions in West Asia, where conflicts involving the United States, Israel, and Iran have disrupted global oil supply chains. However, a recent announcement by the U.S. to pause attacks on Iran’s energy infrastructure for 10 days has brought some relief to the oil market.
As a result, crude oil prices saw a slight dip on Friday morning. Brent crude fell by 0.88% to $107.11 per barrel, while U.S. WTI crude also declined by 0.88% to $93.65 per barrel.
The conflict, which escalated after joint strikes on Iran on February 28, has led to significant instability in global commodity and financial markets. Thousands of lives have been lost, and the disruption in oil supply has contributed to inflationary pressures worldwide.
With the latest excise duty cuts and easing crude prices, there is growing optimism that fuel prices in India may decline soon, bringing relief to households and businesses alike.
