- Petrol has been brought down from ₹13 to ₹3 per litre
- Duty on diesel has been reduced from ₹10 to zero
Punjab Newsline | National
Amid the ongoing conflict in West Asia and the resulting global energy crisis, the Central Government has taken a major step to ease pressure on the domestic fuel sector. As per a notification issued by the Ministry of Finance on March 26, the excise duty on petrol and diesel has been reduced by ₹10 per litre.
Following this decision, excise duty on petrol has been brought down from ₹13 to ₹3 per litre, while the duty on diesel has been reduced from ₹10 to zero. The revised rates have come into effect immediately.
Relief for Oil Companies Amid Rising Crude Prices
The move is aimed at providing relief to major public sector oil marketing companies such as Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), and Indian Oil Corporation Limited (IOC), which have been under increasing financial strain due to rising global crude oil prices.
International oil prices have surged by nearly 50 percent amid escalating tensions in West Asia. Despite this sharp increase, the government had maintained stable retail fuel prices until now, placing significant pressure on these companies.
Government Balances Consumer Relief and Economic Stability
Excise duty on petrol and diesel is a key source of revenue for the Central Government, contributing to funding for infrastructure development, defense, and welfare schemes. However, in light of the current crisis, the government has prioritized stabilizing the fuel market and supporting oil companies.
This decision is expected to help maintain price stability for consumers while ensuring the financial health of fuel retailers during a period of global uncertainty.