Highlighting the impact of the ongoing crisis in West Asia, Shah noted that many countries are facing fuel shortages and rising prices. In contrast, he said, India has taken proactive steps to ease the burden on consumers
Amit Shah. File Photo
Union Home Minister Amit Shah on Friday said that the Central government’s decision to reduce excise duty on petrol and diesel will provide significant relief to citizens at a time when global fuel prices are surging due to geopolitical tensions.
Highlighting the impact of the ongoing crisis in West Asia, Shah noted that many countries are facing fuel shortages and rising prices. In contrast, he said, India has taken proactive steps to ease the burden on consumers.
Praise for Leadership and Policy Intervention
In a message posted on the social media platform X, Shah credited Narendra Modi for the decision, calling it an example of people-centric governance.
He emphasised that while several nations have increased fuel prices in response to global pressures, the Indian government has chosen to reduce excise duty, demonstrating sensitivity toward citizens’ needs. The move, he said, reflects a governance approach focused on public welfare during times of economic stress.
Excise Duty Slashed to Cushion Price Impact
The government has reduced excise duty on petrol and diesel by Rs 10 per litre each. Following the revision, excise duty on petrol now stands at Rs 3 per litre, while diesel has effectively been brought down to zero.
The decision is aimed at cushioning the domestic market from the impact of rising international crude oil prices, which have been influenced by ongoing geopolitical tensions, particularly involving the United States, Israel, and Iran.
In addition to the excise duty reduction, the government has also provided exemptions on duties for fuel exports and supplies to foreign-bound aircraft. Furthermore, customs duty relief has been granted on imported aviation turbine fuel (ATF), reversing an earlier 2022 notification.
Global Energy Crisis Drives Policy Response
The move comes against the backdrop of a deepening global energy crisis, exacerbated by disruptions in key supply routes such as the Strait of Hormuz. Concerns over supply constraints and rising crude prices had raised fears of a sharp increase in fuel prices domestically.
Oil marketing companies are expected to absorb part of the financial impact of the duty cut. Industry estimates suggest that these companies are currently facing losses of nearly Rs 48.8 per litre on fuel sales due to elevated global crude prices, reported IANS.
Oil Prices Show Signs of Easing Amid Volatility
Amid continued volatility, global oil prices showed some signs of easing. Brent crude futures declined by over 2 per cent to approximately USD 105 per barrel, while US WTI crude also registered a drop of more than 2.5 per cent in early trading, reported IANS.
Despite the temporary softening, markets remain highly sensitive to geopolitical developments, and uncertainty continues to influence price trends.
Government Assures Stable Fuel Supply
The Centre has reiterated that India’s petroleum and LPG supply remains stable and fully secure. Authorities have also cautioned citizens against misinformation being circulated regarding fuel shortages, reported IANS.
Officials described such claims as part of a coordinated attempt to create unnecessary panic and urged the public to rely only on verified information. The government maintained that adequate stocks are available and supply chains remain uninterrupted across the country, reported IANS.
(With inputs from IANS)
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