New Delhi: In a major relief measure for consumers, the government of India has sharply reduced excise duties on petrol and diesel, significantly lowering the tax burden on fuel prices.
According to the latest announcement, excise duty on petrol has been cut from Rs 13 per litre to Rs 3 per litre, while diesel has been made completely tax-free at the central level, down from Rs 10 per litre. The move is expected to ease inflationary pressures and provide relief to both households and industries.
The decision comes against the backdrop of a global energy crisis triggered by escalating tensions involving Iran, Israel, and the United States. The situation has disrupted supply chains, particularly due to restrictions in the Strait of Hormuz, a key corridor through which a substantial portion of the world’s oil and gas is transported.
Before the conflict, India relied on this route for a notable share of its crude oil imports. The ongoing disruption has pushed global crude prices upward, increasing the cost burden on importing nations.
Officials indicated that the tax cut is aimed at cushioning the domestic market from international volatility and maintaining price stability. Analysts believe the move could help control inflation and support economic activity, especially in sectors heavily dependent on fuel.
While the reduction is expected to provide immediate relief at the pump, experts caution that sustained benefits will depend on global oil price trends and geopolitical developments in the coming weeks.
