Government Explains Petrol, Diesel Duty Cut
India has defended its latest fuel tax cut, with Petroleum Minister Hardeep Singh Puri saying the Centre chose to protect consumers from the global energy shock instead of passing the full burden on through higher petrol and diesel prices. The decision comes amid rising international fuel prices linked to the West Asia conflict and disruption around the Strait of Hormuz.
Hardeep Singh Puri Explains Excise Duty Cut
Puri said the government had two clear choices as global energy prices surged. It could either sharply raise fuel prices for Indian consumers or absorb the pressure through reduced tax revenue. He said Prime Minister Narendra Modi chose to shield citizens from international volatility by taking the financial hit at the government level.
Petrol And Diesel Excise Duty Reduced
The Centre has cut excise duty on petrol to Rs 3 per litre from Rs 13 per litre. On diesel, the duty has been reduced to nil from Rs 10 per litre. The move is aimed at limiting the impact of the global energy crisis on domestic consumers at a time when crude and fuel markets remain highly unstable.
Government Seeks To Protect Domestic Supply
Puri also said the government has taken a major revenue hit to reduce the burden on consumers and contain losses faced by oil companies. At the same time, export duties have been imposed on diesel and aviation turbine fuel to ensure that more fuel remains available for domestic use. He also dismissed rumours of any lockdown in India, saying there is no such proposal under consideration and urging people not to spread panic.
