New Delhi: The Government of India has announced that fuel duty rates will be reviewed every 15 days after reducing the special additional excise duty on petrol and diesel by Rs 10 per litre each.
Following the revision, the total central excise duty now stands at Rs 11.9 per litre for petrol and Rs 7.8 per litre for diesel. Officials clarified that the duty reduction will not immediately affect retail fuel prices.
Vivek Chaturvedi said the move is intended to offset losses faced by oil marketing companies due to rising crude oil prices and disruptions in global supply.
The surge in crude prices has been triggered by escalating tensions in West Asia following the conflict involving Iran, Israel and the United States. The situation has significantly affected global energy markets.
The conflict, which began on February 28 with strikes targeting Tehran and later expanded to energy infrastructure across the region, also led to a blockade in the strategic Strait of Hormuz.
The disruption caused a sharp rise in global oil prices, with Brent Crude climbing from around 68 dollars per barrel before the conflict to above 100 dollars in early March. Prices later rose further to about 110 dollars per barrel.
The Strait of Hormuz is a critical supply route for India, as roughly 40 to 50 per cent of the country’s crude oil imports pass through the corridor. India also receives a significant share of its liquefied natural gas and liquefied petroleum gas shipments through the same route, including supplies from Qatar and the United Arab Emirates.
Despite concerns over possible shortages, officials have reassured the public that supplies remain stable. According to the Ministry of Petroleum and Natural Gas, India currently holds around 60 days of crude oil stock and about 30 days of LPG reserves.
Authorities have also moved to diversify import sources and ensure uninterrupted supply while refineries continue operating at high capacity to meet domestic demand.
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