- The government cut excise duties on petrol and diesel by Rs 10 per litre each
- PM Modi chaired a late-night meeting to address rising global crude prices
- Finance Minister Sitharaman assured no fuel shortages or lockdowns would occur
The government's decision to slash excise duties for petrol and diesel by Rs 10 per litre each was taken at a late-night emergency meeting chaired by Prime Minister Narendra Modi last night, with the Centre stepping in to cushion consumers from the impact of rising global crude prices amid the Middle East crisis.
Sources said the Prime Minister reviewed the situation and directed officials to ensure that any surge in international oil prices does not burden the common people.
Soon after the meeting, the Ministry of Finance issued a notification announcing the reduction in excise duty.
The move has brought the centre-imposed taxes down to Rs 3 per litre of petrol and made it zero for diesel. However, industry sources say the reduction is unlikely to translate into lower prices at fuel stations for most consumers as the cut will likely be absorbed by oil marketing companies (OMCs) to offset heavy losses on pump sales.
Union Finance Minister Nirmala Sitharaman said the decision was aimed at maintaining both affordability and availability of fuel across the country. She dismissed concerns over shortages and speculation about restrictions, saying there will be no lockdown and no disruption in fuel supply, describing the claims as "baseless" and cautioned against spreading unnecessary panic.
On the rationale behind the move, the Finance Minister said the government will support oil marketing companies to ensure continued imports of crude so that there is no shortage of petrol, diesel, or aviation turbine fuel. The aim, she said, is to prevent any increase in retail prices despite global volatility.
Sitharaman also announced that duties on export of certain petroleum products, including aviation turbine fuel, have been increased to prioritise domestic availability. Refineries exporting fuel will now face higher levies so that supplies remain within the country.
Union Minister Dharmendra Pradhan welcomed the decision, calling it a timely step taken in the public interest during a challenging global situation. Commerce Minister Piyush Goyal said the excise duty cut translates into direct relief of Rs 10 per litre on petrol and diesel, while the export duty changes will help stabilise domestic supply and protect economic momentum.
The opposition, however, questioned the effectiveness of the move. RJD MP Misa Bharti alleged that fuel availability remains a concern and asked what benefit the public would receive if shortages persist.
Congress MP Manish Tewari said the government is not making any sacrifice, arguing that tax reductions do not amount to direct spending from its own resources, while senior Congress leader Pramod Tiwari said fuel taxes remain significantly higher than earlier levels and termed the relief inadequate, accusing the government of only partially rolling back past increases.
The Centre has maintained that the decision reflects a calibrated response to a volatile global energy market, with the focus on protecting consumers while ensuring a steady domestic supply.
