Centre extends excise duty exemption on ethanol-blended petrol as fuel prices rise amid crude oil market turmoil. Photo: AI
The central government has extended central excise duty exemptions to petrol blended with higher proportions of ethanol, according to an official notification issued on June 10. The exemption will apply to petrol containing 22 per cent, 25 per cent, 27 per cent and 30 per cent ethanol. The notification stated that fuel blends conforming to Bureau of Indian Standards (BIS) specifications will continue to attract a nil rate of excise duty. The union government earlier reduced excise duty on domestically consumed petrol and diesel by ₹10 per litre each at the end of March. The decision was aimed at shielding consumers from the impact of rising crude oil prices.
The government has also imposed export duties of ₹21.5 per litre on diesel and ₹29.5 per litre on aviation turbine fuel (ATF).
Against the backdrop of tightening global energy supplies, Indian oil marketing companies have increased fuel prices four times since May 15. In the most recent revision on May 25, state-owned fuel retailers increased diesel prices by ₹2.71 per litre and petrol prices by ₹2.61 per litre.
With that revision, petrol and diesel prices had risen by approximately ₹7.5 per litre since May 15. Overall, fuel prices have been increased four times over the past month, with the latest hike of around ₹2.6 per litre for petrol and ₹2.7 per litre for diesel announced last week.
Since the beginning of the US-Iran conflict, fuel prices have climbed by about ₹7.5 to ₹8 per litre as global crude oil prices continue to rise due to the ongoing tensions in the Middle East. The situation has significantly affected oil marketing companies.
Despite the recent price revisions, state-owned oil companies are reportedly incurring losses of approximately ₹1,600 crore to ₹1,700 crore every day.
Over a period of 10 weeks, these losses have crossed ₹1 lakh crore amid the continuing energy crisis.
Consumers across the country are also feeling the impact, with petrol prices in some cities nearing or crossing the ₹114-per-litre mark, highlighting significant differences in fuel costs across states.
Delhi: ₹102.12 per litre
Kolkata: ₹113.47 per litre
Mumbai: ₹112.21 per litre
Chennai: ₹108.01 per litre
Hyderabad: ₹115.73 per litre
Bengaluru: ₹110.89 per litre
Delhi: ₹95.20 per litre
Kolkata: ₹99.82 per litre
Mumbai: ₹97.83 per litre
Chennai: ₹99.66 per litre
Hyderabad: ₹103.82 per litre
Bengaluru: ₹98.80 per litre
Announcing the excise duty reduction on March 27, Finance Minister Nirmala Sitharaman had said in a post on X, “In view of the West Asia crisis, the central excise duty on petrol and diesel for domestic consumption has been reduced by ₹10 per litre each. This will provide protection to consumers from rise in prices. Hon. PM @narendramodi has always ensured that citizens are protected from vagaries of supply and costs of essential goods.”
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Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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