Delhi: Amidst rising fuel prices triggered by the conflict involving Iran, the Central Government has reduced the excise duty on petrol and diesel. The excise duty on petrol has been slashed from ₹13 to ₹3 per liter, while on diesel, it has been reduced from ₹10 to zero. Consequently, the excise duty on petrol now stands at ₹3 per liter, and on diesel, it is zero. This measure ensures that petrol and diesel prices will not rise for the time being.
This reduction has been implemented amidst a global energy crisis—specifically a shortage—caused by a blockade imposed by Tehran on the Strait of Hormuz during the conflict involving Iran. This strait serves as the conduit for one-fifth of the world’s crude oil and gas supply—amounting to 20 to 25 million barrels per day.
In a late-night notification, the Ministry of Finance stated that this decision would come into effect immediately.
Following this government decision, Hardeep Singh Puri, the Minister of Petroleum and Natural Gas, stated in a post on ‘X’ (formerly Twitter) that the government has absorbed a significant impact on its own tax revenue to mitigate the heavy losses being incurred by oil companies (estimated at approximately ₹24 per liter for petrol and ₹30 per liter for diesel) at a time when international prices are skyrocketing. Additionally, an export tax has been imposed; given that international prices for petrol and diesel are soaring, any refinery exporting these fuels to other countries will now be required to pay this export tax. “I express my gratitude to Prime Minister Narendra Modi and Union Minister Nirmala Sitharaman for this momentous decision,” he added.
The government has taken this step to provide relief to petroleum companies, which are currently purchasing crude oil at elevated prices. Due to the conflict involving Iran, the price of Brent crude has reached $100 per barrel—having recently touched a peak of $119 per barrel.
Amidst the conflict in West Asia, scenes of panic buying and fuel shortages are being witnessed across the country. Long queues have been observed at petrol pumps in several parts of the nation, and “No Stock” signboards have been displayed at numerous outlets. However, the government maintains that India possesses adequate reserves of crude oil. There is no shortage of petrol and diesel at any petrol pump across the country.
Indian Oil Corporation has assured customers that its petrol pumps are fully stocked and operating smoothly. Hindustan Petroleum Corporation Limited has also assured customers that there is no shortage of petrol, diesel, or LPG in the country.
Warning against rumors, the government has appealed to the public not to panic, to report instances of hoarding, and to rely solely on official information.
