Government takes major decision on petrol and diesel, reduces excise duty on petrol by Rs 3, and diesel by Rs 10
Amid global tensions, the government has significantly cut excise duty on petrol and diesel, raising hopes of relief in fuel prices, even as the global oil market has recently softened.
Amid tensions in the Middle East, the government has taken a major decision regarding petrol and diesel. The central government has reduced the special additional excise duty on petrol and diesel.
The excise duty on petrol has been reduced from ₹13 per liter to ₹3 per liter. Meanwhile, the excise duty on diesel has been reduced from ₹10 per liter to zero.
This decision by the government is expected to lead to a reduction in petrol and diesel prices in the coming days.
This is a major step by the central government in light of the energy crisis caused by the ongoing war between Iran and Israel-USA.
The Iran war has disrupted half the supply of crude oil, the raw material used to make fuels like petrol and diesel. However, the government has clarified that the country has secured sufficient crude oil supplies from other sources for the next 60 days.
The government has now reduced the additional excise duty on petrol from the previous Rs 13 per liter to Rs 3 per liter. The excise duty on diesel has been reduced from the previous Rs 10 per liter to Rs 0.
Naira had increased the prices
Last Thursday, Nayara Energy, one of the country's largest refineries, raised the prices of petrol and diesel.
Following the announcement of a ₹5 per liter increase in petrol prices and ₹3 per liter increase in diesel prices, the government reduced the excise duty on both petrol and diesel by ₹10 per liter.
Softening of crude oil prices
The ongoing conflict between the US, Israel, and Iran in West Asia has disrupted crude oil supplies, causing oil prices to rise.
However, prices fell slightly in early trading on Friday after the US announced a 10-day halt to attacks on Iranian energy plants.
According to Reuters, Brent crude prices fell 0.8% to $107.11 per barrel, while US West Texas Intermediate (WTI) fell 0.88% to $93.65 per barrel. Both had registered significant gains a day earlier.
This tension began on February 28th, when the US and Israel attacked Iran.
In response, Iran targeted Israel and Gulf countries where US military bases are located. Thousands of people have been killed in the attacks in Iran and Lebanon so far. The war has disrupted oil supplies, driving up prices and impacting markets worldwide.