New Delhi, March 27: The government announced on Friday that there will be no change in the retail prices of petrol and diesel. The reduction in excise duty will not be passed on to consumers but will instead help offset losses incurred by oil companies.
The Ministry of Petroleum stated, “This will directly assist in reducing the under-recovery of government oil marketing companies—Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation—since these companies are selling petrol and diesel at prices significantly lower than their costs.”
Due to current international crude oil prices, oil companies are facing a loss of approximately ₹26 per liter on petrol and ₹81.90 per liter on diesel.
The total daily loss borne by oil marketing companies is around ₹2,400 crores.
The ministry noted that the reduction in excise duty compensates for ₹10 per liter of these losses, allowing oil marketing companies to maintain unchanged retail prices while ensuring uninterrupted fuel supply.
The government has immediately reduced the excise duty on both petrol and diesel by ₹10 per liter.
“This decision was made in response to the sharp increase in international crude oil prices, which have surged nearly 75% in less than four weeks to about $122 per barrel from approximately $70 per barrel, due to ongoing conflicts in West Asia and disruptions in global energy supply chains,” the ministry explained.
It is important to compare this with global fuel markets. Since the onset of the current crisis, fuel prices have increased by 30 to 50 percent in South and Southeast Asian countries, 30 percent in North America, and 20 percent in Europe. India has maintained a stable stance, which comes at a financial cost that the government has chosen to bear.
Earlier, Finance Minister Nirmala Sitharaman stated that the central excise duty on petrol and diesel has been reduced by ₹10 per liter amidst rising tensions in West Asia. This move aims to protect consumers from price hikes.
As a result, the excise duty on petrol has decreased to ₹3 per liter from ₹13 per liter, while the excise duty on diesel has dropped to zero from ₹10 per liter.
The finance minister further noted that Prime Minister Narendra Modi has consistently ensured that citizens are shielded from fluctuations in the supply and costs of essential goods.
Additionally, a charge of ₹21.5 per liter has been imposed on diesel exports and ₹29.5 per liter on ATF, ensuring adequate availability of these products for domestic consumption.
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My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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