New Delhi/Nagpur: The central government has announced a significant reduction in excise duty on fuel, cutting ₹3 per litre on petrol and bringing diesel excise duty down by ₹10 per litre to zero. The move comes amid rising global concerns over crude oil supply disruptions due to the ongoing tensions involving Iran, Israel, and the United States.
Despite the geopolitical instability affecting nearly half of the crude oil supply, the government has assured that India has secured sufficient reserves for the next 60 days through alternative sources. The decision is aimed at preventing a sharp surge in domestic fuel prices and easing pressure on the economy.
However, the key question remains—will petrol and diesel actually become cheaper?
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Experts suggest that while the excise duty cut appears to be a relief measure, it may not directly translate into lower retail prices. Sources indicate that the reduction is primarily intended to offset losses incurred by oil marketing companies due to volatile global prices. As a result, fuel prices may remain stable rather than decrease significantly.
While the move provides indirect relief to both consumers and fuel companies, any immediate price drop at petrol pumps will depend on how oil companies adjust their pricing in the coming days.
