The Congress party criticized the recent excise duty reduction on petrol and diesel, stating that it does not provide real relief to the public. Despite headlines suggesting a price decrease, the party accused the government of deceiving people, emphasizing that prices for both dealers and consumers remain unchanged. Congress leader Pawan Khera highlighted that the reduction applies to the ‘special additional excise duty,’ a tax paid by Oil Marketing Companies to the government, which he deemed unnecessary.
Khera clarified that the Oil Marketing Companies have been bearing losses since the West Asia conflict outbreak. He mentioned that the government has agreed to share a portion of this burden by cutting the ‘special additional’ levy, albeit almost a month later. While relief is present in the narrative, Khera emphasized that it lacks substance in reality. He urged the government to focus on providing genuine relief to consumers instead of creating misleading headlines.
In response to surging global oil prices, the government reduced excise duties on petrol and diesel by Rs 10 per litre each. This move aimed to mitigate the impact of escalating oil prices worldwide. Additionally, the government granted duty exemptions for fuel exports and supplies to foreign-going aircraft. Furthermore, the Centre revoked a previous 2022 notification and offered customs duty relief on imported aviation turbine fuel (ATF).
Amid concerns of a price surge due to the global energy crisis triggered by geopolitical tensions, oil marketing companies are expected to absorb the duty reduction to offset their increasing losses. These companies are currently facing significant losses per litre on fuel sales, primarily due to elevated global crude prices. While global oil prices experienced a decline, with Brent crude futures dropping to $105.53 per barrel and US WTI futures falling to $92.08, the government assured citizens of India’s secure and controlled petroleum and LPG supply situation, cautioning against misinformation campaigns.
