Petroleum and Natural Gas Minister Hardeep Singh Puri and Finance Minister Nirmala Sitharaman on Friday welcomed the Centre’s decision to cut excise duties on petrol and diesel, describing it as a timely step to protect citizens from rising global energy prices.
The remarks came a day after the government reduced excise duty on petrol and diesel, even as international crude oil prices surged sharply amid geopolitical tensions in West Asia.
In a post on X, Puri said the government had chosen to absorb the financial burden rather than pass on the impact to consumers. “International crude prices have risen steeply in the last month, from around $70 per barrel to about $122 per barrel. While fuel prices have increased significantly across the world, India has opted to shield its citizens from such volatility,” he said.
He added that oil marketing companies had been incurring heavy losses due to elevated crude prices, and the government’s decision would help ease this burden. The minister also highlighted that export duties on petroleum products have been introduced to ensure adequate domestic availability.
Puri emphasised that the government is closely monitoring global developments related to energy, supply chains, and essential commodities, and is prepared to take proactive measures to ensure uninterrupted supplies. He also dismissed rumours of a lockdown, calling them “completely false” and urging citizens to remain calm and avoid panic.
Finance Minister Sitharaman echoed similar sentiments, stating that the reduction in excise duty was aimed at insulating consumers from price shocks caused by the ongoing West Asia crisis. “The decision will help protect consumers from rising fuel costs,” she said, adding that duties have also been imposed on diesel exports and aviation turbine fuel (ATF) to maintain adequate domestic supply.
She reiterated that the government remains committed to safeguarding citizens from fluctuations in global markets and ensuring the availability of essential commodities.
The government’s move comes at a time when fuel prices have surged globally, with increases ranging between 20% and 50% across various regions.
In a notification issued on Thursday, the Union Ministry of Finance reduced the excise duty on petrol to ₹3 per litre from the earlier ₹13 per litre, while the duty on diesel was cut to nil from ₹10 per litre. The ministry said that these reductions have come into effect immediately. The government also imposed a windfall tax of ₹21.5 per litre on diesel exports.
