Government Cuts Excise Duty on Fuel to Ease Burden on Citizens: Nirmala Sitharaman

New Delhi, March 27: The central government has announced a reduction in excise duty on petrol and diesel. Finance Minister Nirmala Sitharaman stated that this cut aims to alleviate the financial burden on the public.

Speaking to reporters in Parliament, she highlighted the recent surge in global oil prices. India imports crude oil and exports various refined products. She mentioned that Prime Minister Modi had two primary concerns: keeping diesel and petrol prices stable for the public and ensuring a steady supply of oil in the country to avoid fuel shortages. Consequently, the government has imposed taxes on exporting refineries.

Sitharaman explained that the government will absorb the burden of these taxes to prevent an increase in fuel prices. She noted that a meeting was held on Ram Navami, and the announcement was made in Parliament the following morning. Addressing opposition allegations, she remarked that if oil companies did not benefit from this reduction, fuel would have become more expensive for the public. The government is shouldering the rising costs of oil to keep prices stable for citizens.

In response to claims that the price cuts were politically motivated, Sitharaman dismissed such assertions as shameful, stating there was no path for further reductions.

On Friday, the central government reduced excise duty on petrol and diesel by ₹10 per liter. The new duty is now ₹3 per liter for petrol, while diesel has been exempted from duty altogether. This decision aims to mitigate the impact of rising global oil prices.

The announcement comes amid concerns over a potential increase in oil prices due to the global energy crisis, exacerbated by tensions between the U.S.-Israel and Iran, as well as disruptions in the Strait of Hormuz.

Oil companies may choose to use this duty cut to offset their losses rather than pass the benefits on to consumers.

The government reassured that the supply of petrol, diesel, and LPG in India is completely secure and urged the public to disregard any rumors regarding shortages.

–