The Union government has reduced excise duties on petrol and diesel, citing the need to ease the financial burden on oil marketing companies as global crude prices rise amid the ongoing West Asia conflict.
According to the report, crude prices climbed in international markets following the February 28 attacks on Iran by the US and Israel, and the continuing confrontation over the past four weeks. The increase has added to the cost pressures faced by Indian oil companies.
Under the revised rates, the excise duty on petrol has been cut to Rs 3 per litre from Rs 13 per litre. The excise duty on diesel has been reduced from Rs 10 per litre to zero, effectively removing the duty on diesel.
The government said the duty reduction is intended to help oil companies manage the current challenges, and that there will be no change in retail prices of petrol and diesel.
The Ministry of Petroleum and Natural Gas also noted that there is no fuel shortage in the country, with fuel stocks sufficient for 60 days and crude oil stocks sufficient for 74 days.
