The government on Friday has reduced excise duty on petrol and diesel in a bid to manage rising fuel costs triggered by the ongoing US-Israel-Iran conflict. The move comes as global crude prices surge and supply chains face disruptions.
Excise Duty Cut: What Has Changed
As per the latest government order-
Petrol excise duty cut from ₹13 per litre to ₹3
Diesel excise duty reduced from ₹10 per litre to zero
The reduction of ₹10 per litre on both fuels is aimed at easing pressure on oil companies and stabilising domestic fuel prices.
Petrol & Diesel Prices Today (City-wise)
New Delhi: Petrol ₹94.77 | Diesel ₹87.67
Mumbai: Petrol ₹103.54 | Diesel ₹90.03
Kolkata: Petrol ₹105.45 | Diesel ₹92.02
Chennai: Petrol ₹100.84 | Diesel ₹92.39
Bengaluru: Petrol ₹102.92 | Diesel ₹90.99
Hyderabad: Petrol ₹107.46 | Diesel ₹95.70
Ahmedabad: Petrol ₹94.29 | Diesel ₹89.95
Why The Government Took This Step
The decision follows a sharp rise in global crude oil prices due to tensions in West Asia. The conflict has disrupted supplies, especially through the Strait of Hormuz, a key route for global oil shipments.
India, which depends heavily on imports for its energy needs, has been directly impacted. A large share of its crude oil comes through this route, making the situation more sensitive. The duty cut is meant to cushion the impact of rising input costs and prevent a sudden spike in fuel prices.
Will Petrol And Diesel Prices Come Down?
Despite the tax relief, consumers may not see an immediate drop in fuel prices. Oil marketing companies (OMCs) have been facing heavy losses due to high crude prices. The duty cut is likely to help offset these losses rather than reduce retail prices right away.
