Petrol, Diesel Excise Duty Cut: No Energy Lockdown, But At What Cost To The Economy?
India's government has cut excise duties on petrol and diesel to alleviate pressure on Oil Marketing Companies and consumers amid rising crude oil prices due to the US-Iran conflict. The move aims to prevent lockdown-like restrictions and ensure adequate fuel supplies, with the government also promoting the use of piped natural gas as a more convenient alternative.
The US-Iran war has disrupted global energy markets, raising concerns about supply disruptions. India sources 12-15% of its crude oil imports through the Strait of Hormuz. The conflict has pushed crude prices higher, with Brent crude above $100 per barrel. The Indian government has cut excise duties on petrol and diesel to ₹3 per litre and zero, respectively. The windfall tax on diesel exports is set at ₹21.5 per litre. The government has assured citizens of adequate fuel supplies and advised them not to believe rumors. India is also grappling with an LPG shortage due to the war, but cylinder deliveries continue as normal.
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