The Centre has reduced excise duties on petrol and diesel by Rs 10 per litre each, setting petrol prices at Rs 3 per litre and diesel at zero. This move aims to ease the impact of surging global oil prices. Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, stated that the government faced a choice between raising prices significantly like other nations or absorbing the financial burden to protect Indian citizens.
Puri highlighted the sharp increase in international crude prices over the past month, leading to price hikes worldwide. He commended Prime Minister Narendra Modi for prioritizing citizens’ interests by absorbing the financial impact. The government has incurred substantial losses in tax revenues to alleviate the burden on oil companies during this period of high global prices.
In response to the escalating global energy crisis, the government has exempted duties on fuel exports and supplies to foreign-bound aircraft. Additionally, customs duty relief has been granted on imported aviation turbine fuel (ATF). Oil marketing companies are expected to absorb the duty reduction to offset their growing losses, currently estimated at around Rs 48.8 per litre due to elevated global crude prices.
Amid concerns of a price surge triggered by the global energy crisis, global oil prices have slightly declined. Brent crude futures dropped by 2.29% to $105.53 per barrel, while US WTI futures fell by 2.54% to $92.08 as of 8:50 am.
