India’s largest private fuel retailer, Nayara Energy, has announced a reduction in petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre at its over 7,000 fuel stations nationwide. This marks the first decrease in retail fuel prices since the easing of global crude oil prices after tensions in West Asia de-escalated. However, the actual prices will vary by state due to local taxes, including value-added tax (VAT).
The price adjustment follows a drop in international crude oil prices post the relaxation of hostilities in West Asia and the reopening of crucial shipping routes, which has normalized the supply of crude oil and liquefied natural gas, alleviating concerns about global disruptions. This reduction coincides with the start of the month and other modifications, such as a decrease in commercial LPG cylinder prices and a revision in the windfall tax on petroleum products.
State-run oil marketing companies have also slashed the prices of 19-kg commercial LPG cylinders by up to Rs 183.5 in major cities, while maintaining the price of the 14.2-kg domestic LPG cylinder. Furthermore, the government has adjusted the windfall tax on petroleum product exports, increasing the tax on petrol exports and reducing it on diesel and aviation turbine fuel (ATF).
Effective July 1, the revised rates include a rise in the Special Additional Excise Duty (SAED) on petrol exports to Rs 4 per litre from Rs 1.5 per litre previously. Simultaneously, the export duty on diesel has been lowered to Rs 8.5 per litre from Rs 14 per litre, and the levy on ATF exports has been decreased to Rs 7.5 per litre from Rs 12.5 per litre. The existing excise duty on petrol and diesel for domestic use remains unchanged, as per the Finance Ministry.
