In a major strategic move to shield the domestic market from skyrocketing international crude oil prices, the Central Government on Friday announced a reduction of ₹10 per litre in excise duty on petrol and diesel. Finance Minister Nirmala Sitharaman stated that this decision comes as Brent crude touched $108 per barrel following the escalation of conflict between the US-Israel and Iran, which disrupted nearly 20% of the world’s oil supply via the Strait of Hormuz.

While retail prices at the pump remain unchanged for now, the duty cut is intended to offset the massive marketing losses faced by Oil Marketing Companies (OMCs). Petroleum Minister Hardeep Singh Puri highlighted that while fuel prices have surged by 20% to 50% globally, the Modi government chose to absorb the financial shock rather than passing it on to the citizens. To prioritize domestic availability, the government has also imposed additional export duties on diesel and ATF.