By Our Special Correspondent
New Delhi, March 27: In a significant move to cushion consumers from rising global oil prices, the Centre has cut excise duties on petrol and diesel by Rs 10 per litre each. The excise duty on petrol now stands at Rs 3 per litre, while diesel is exempt from duty.
The decision, announced by Finance Minister Nirmala Sitharaman, aims to protect consumers from price hikes amid the West Asia crisis. Prime Minister Narendra Modi chaired a late-night emergency meeting to address the situation, directing officials to ensure fuel availability and affordability.
The move is unlikely to bring down petrol and diesel prices, as oil marketing companies are expected to absorb the benefit to offset mounting losses. The government’s decision is estimated to result in a revenue loss of Rs 1.3 trillion to Rs 1.7 trillion.
Following the Centre’s move, states have been urged to reduce Value Added Tax (VAT) on fuel to further decrease prices. The government’s move is seen as a temporary measure to manage volatility and protect consumers.
