New Delhi [India] March 27, : In a major move aimed at providing relief to citizens amid global energy price volatility, the Centre on Friday reduced excise duty on petrol to ₹3 per litre from ₹13 and on diesel to zero from ₹10, a decision hailed by several senior leaders for its focus on easing the burden on the common man.
Union Minister Jitendra Singh said that the move was "highly courageous".
"In the midst of the ongoing turmoil, PM Sh@NarendraModi has once again risen to the occasion by taking a highly courageous and sensitive decision to reduce the excise duty on petrol to Rs 3 per litre from Rs 13 per litre and on diesel to Nil (Zero) from Rs 10 per litre respectively, thereby bringing a huge relief to the common man. Just as during the Covid pandemic, India had set an example for the rest of the world, in the present times also, PM Modi has shown the way," Singh posted on X.
Union Minister Piyush Goyal said the government was ensuring that India's growth engine remains unhindered by prioritising domestic supply through strategic export duties on diesel and Aviation Turbine Fuel.
"A decisive move by PM @NarendraModi Ji to shield 140 crore Indians from global turbulence! Despite the West Asia crisis causing ripples in global energy markets, the Centre has ensured direct price relief by reducing excise duty on petrol and diesel by ₹10 per litre, respectively. By prioritising domestic supply through strategic export duties on diesel and Aviation Turbine Fuel, the Government is ensuring that India's growth engine remains unhindered," Goyal posted on X.
He further added, "This is a testament to the Modi Government's unwavering commitment to making 'Ease of Living' a reality for every household. No matter the global challenge, the interests of our common citizens always come first."
Union Minister Shivraj Chouhan added on X, "Whenever India has faced crises or adverse global conditions, Hon. PM Shri Narendra Modi has consistently demonstrated decisive leadership and strategic foresight to safeguard citizens' interests."
"Today's decision is yet another testament to that commitment. The reduction in excise duty on petrol from ₹13 to ₹3 per litre and on diesel from ₹10 per litre to Nil will provide significant relief to the common man while cushioning the impact of global price volatility. Further, duties on export of diesel at ₹21.5 per litre and on ATF at ₹29.5 per litre will ensure adequate domestic availability. This reflects a balanced, people-centric approach with citizens' welfare paramount," he said.
The decision follows escalating tensions in West Asia due to the ongoing conflict involving the United States, Israel, and Iran, which has led to a blockade of the Strait of Hormuz--a crucial route that handles nearly one-fifth of the world's crude oil supply. Before the crisis, India sourced around 12-15% of its oil imports through this route.
While the duty cut is expected to ease pressure on oil marketing companies facing losses due to surging crude prices, retail prices of petrol and diesel have remained unchanged so far.