The government recently reduced excise duty on petrol to Rs 3 per litre and completely exempted diesel from excise duty, presenting the decision as a measure to ease the burden of rising global fuel prices
Pawan Khera. Pic/X
The Congress on Friday criticised the Centre’s decision to cut excise duty on fuel, arguing that the move does not translate into any tangible relief for consumers or fuel dealers.
The government recently reduced excise duty on petrol to Rs 3 per litre and completely exempted diesel from excise duty, presenting the decision as a measure to ease the burden of rising global fuel prices. However, the Congress contends that the reduction is largely symbolic and does not impact retail prices.
‘Relief Exists Only in Narrative,’ Says Pawan Khera
Senior party leader Pawan Khera said that despite headlines suggesting a drop in fuel prices, there has been no actual change in what consumers pay at petrol pumps.
Taking to social media, Khera remarked that people expecting relief in their daily expenses would be disappointed. He asserted that fuel prices for both dealers and end consumers remain unchanged despite the government’s announcement.
Reduction Targets Oil Companies, Not Consumers
Khera clarified that the cut applies primarily to the “special additional excise duty,” a levy paid by oil marketing companies rather than directly affecting consumer pricing.
He argued that oil companies have been absorbing losses for weeks due to rising global crude prices triggered by geopolitical tensions in West Asia. According to him, the government’s decision merely shifts a small portion of that burden rather than providing direct relief to the public.
The Congress has accused the government of focusing on optics rather than substantive economic relief, urging policymakers to prioritise measures that directly benefit citizens.
Global Oil Price Surge Adds Pressure
Fuel pricing pressures have intensified due to a sharp rise in international crude oil prices, which surged significantly following military developments involving the United States, Israel, and Iran in late February.
International crude prices had climbed close to USD 119 per barrel earlier this month before moderating to around USD 100 per barrel. The volatility has placed considerable financial strain on oil marketing companies, especially as retail fuel prices have remained unchanged.
India, which imports nearly 88 per cent of its crude oil and a substantial portion of its natural gas, remains highly sensitive to global price fluctuations. A large share of these imports passes through the Strait of Hormuz, making supply chains vulnerable to geopolitical disruptions.
Duty Cuts Expected to Ease Pressure on Oil Firms
According to the Congress, the primary beneficiaries of the excise duty reduction are oil marketing companies rather than consumers. The move is expected to partially offset losses incurred by these firms due to elevated crude prices.
Following the government notification issued on March 26, shares of major public sector fuel retailers saw an uptick in early trading. Companies such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited recorded gains, reflecting investor optimism over improved financial stability.
Despite this, the Congress maintains that the government must take further steps to ensure that any tax relief is directly passed on to consumers, rather than remaining limited to fiscal adjustments within the fuel supply chain.
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