New Delhi: Union Finance Minister Nirmala Sitharaman has welcomed the government’s decision to reduce central excise duty on petrol and diesel by ₹10 per litre, saying the move will help protect consumers from rising fuel prices amid the ongoing tensions in West Asia.
The decision lowers the central excise duty on petrol to ₹3 per litre while diesel will now carry no excise duty. The measure comes as global oil markets face uncertainty due to geopolitical developments in the region.
In a message shared on X, Sitharaman said the step reflects the government’s commitment to shielding citizens from volatility in international energy prices. She also praised Narendra Modi for ensuring that the public remains protected from fluctuations in the cost and supply of essential commodities.
Union Petroleum Minister Hardeep Singh Puri also welcomed the decision, describing it as a timely and forward looking measure. He expressed gratitude to the Prime Minister and the finance minister for taking steps aimed at stabilising fuel prices during a period of global uncertainty.
The duty reduction was announced as rising geopolitical tensions continue to influence global crude oil prices. The situation has been intensified by the ongoing conflict involving the United States and Israel with Iran, along with disruptions in maritime trade routes.
Particular concern has centred on the Strait of Hormuz, a crucial corridor that carries nearly one fifth of the world’s crude oil and gas shipments. Any disruption in this route can significantly affect global energy supplies and prices.
Alongside the excise duty reduction, the government has introduced export duties on certain petroleum products to ensure adequate domestic availability. Diesel exports will now attract a duty of ₹21.5 per litre, while aviation turbine fuel exports will be subject to a levy of ₹29.5 per litre.
Officials said the measures are expected to ease cost pressures on oil marketing companies and help stabilise domestic fuel prices despite volatility in global crude markets. The government has also tightened rules around fuel exports by limiting certain tax benefits that were previously available for shipments of petrol, diesel and aviation fuel.
