After the government’s recent decision to reduce central excise duty on petrol and diesel by Rs 10 per litre each in response to the West Asia crisis, Finance Minister Nirmala Sitharaman stated that this move aims to protect consumers from global price fluctuations. The reduction in excise duty is intended to shield citizens from potential increases in fuel costs, particularly in light of the ongoing crisis in West Asia.
Sitharaman also mentioned that export duties have been imposed on diesel and aviation turbine fuel (ATF) to ensure sufficient domestic availability amidst supply uncertainties. Additionally, a special additional excise duty of Rs 50 per litre has been levied on ATF as part of these measures. Union Commerce and Industry Minister Piyush Goyal supported this decision, describing it as a crucial step to safeguard citizens from international instability.
Goyal highlighted that the excise duty reduction will offer relief to households, while export restrictions on diesel and ATF will prioritize local supply and bolster economic stability. Despite the challenges posed by the West Asia crisis on global energy markets, the government’s actions aim to provide direct price relief through excise duty cuts on petrol and diesel.
Both ministers reiterated the government’s commitment to insulate the domestic economy from external shocks, particularly amidst ongoing geopolitical tensions affecting global energy markets. Notably, Brent crude prices have been volatile, hovering around the $100 mark, and have decreased by over 5% amid escalating conflicts in West Asia and disruptions in the key energy supply route, the Strait of Hormuz.
