📰 Govt Cuts Excise on Petrol, Diesel by ₹10/Litre to Support Oil Firms; No Relief for Consumers

In a significant policy move, the Government of India has reduced excise duty on petrol and diesel by ₹10 per litre, aiming to ease the financial burden on oil marketing companies amid rising global energy pressures. However, the benefit of the cut will not be passed on to consumers, meaning fuel prices at the pump will remain unchanged.

According to official sources, the decision is expected to cost the government approximately ₹7,000 crore in revenue. The relief is intended to compensate oil companies for losses incurred due to volatile international crude oil prices and controlled retail fuel rates.

At the same time, the Centre has increased export duties on diesel and aviation turbine fuel (ATF), a move seen as an effort to ensure adequate domestic availability and stabilize supply in the local market.

Hardeep Singh Puri, the Union Minister for Petroleum and Natural Gas, dismissed speculation about an impending fuel shortage or lockdown. He clarified that there is no crisis situation and assured that the country has sufficient fuel stocks to meet demand.

“There is no question of a lockdown due to fuel shortage. Supplies are stable, and necessary steps are being taken to support oil companies while maintaining availability for consumers,” the minister said.

Experts say the government is walking a tightrope—balancing the need to protect consumers from price shocks while also ensuring that oil companies remain financially viable. By absorbing part of the burden through tax cuts, the Centre aims to prevent losses from escalating for fuel retailers.

However, the decision has drawn mixed reactions. While industry stakeholders have welcomed the support to oil firms, critics argue that consumers should have directly benefited from the excise reduction, especially at a time of rising living costs.

The hike in export duties is also expected to discourage excessive overseas sales by refiners and prioritize domestic supply, particularly in sectors like aviation and transport.

The development comes amid ongoing global uncertainty in energy markets, with governments worldwide adopting measures to manage fuel pricing and supply challenges.