New Delhi (Gurpreet Singh): In a significant step aimed at softening the impact of rising global oil prices, the Centre has announced a steep reduction in excise duties on petrol and diesel across India.
Under the revised structure, excise duty on petrol has been reduced to ₹3 per litre from ₹13, while diesel will now attract no central excise duty, down from ₹10 per litre. The move is expected to bring down retail fuel prices and offer relief to consumers grappling with inflation.
The decision comes at a time when international energy markets remain under pressure due to ongoing geopolitical tensions involving Iran, Israel and the United States. The disruption of crude oil movement through the strategically vital Strait of Hormuz has contributed to supply uncertainties and price volatility worldwide.
India, which depends heavily on imports for its energy needs, had earlier sourced a considerable portion of crude through this route. The current instability has forced policymakers to take corrective steps to shield the domestic economy from global shocks.
Experts say the reduction in fuel taxes could help ease transportation costs and curb price rise in essential commodities. However, they also note that future pricing trends will largely depend on how the international situation unfolds.
The government has indicated that it will continue to monitor the situation closely and take further measures if necessary to maintain stability in the energy sector.
