In an effort to lessen the effects of rising worldwide oil costs, the government on Friday reduced excise taxes on gasoline and diesel by Rs 10 per liter, bringing the rate for gasoline down to Rs 3 and the rate for diesel to zero.
Additionally, the government has granted duty exemptions for fuel exports and fuel for planes traveling overseas.
The Center has also canceled a prior 2022 announcement and provided customs duty breaks for imported aviation turbine fuel (ATF).
Due to the global energy crisis brought on by the US-Israel conflict with Iran and the subsequent blockade of the Strait of Hormuz, the cut occurs at a time of concern about a price increase.
To compensate for growing losses, it is anticipated that oil marketing firms (OMCs) will absorb the cut. Due primarily to high global crude prices, it is now predicted that fuel sales are costing oil marketing firms (OMCs) approximately Rs 48. 8 per liter in losses.
During this period, Brent crude futures saw a 2. 29% drop to $105. 53 a barrel as global oil prices fell. At 8:50 a. m. , US WTI futures also fell 2. 54% to $92. 08.
The government issued a clear declaration on Thursday, urging the public not to be duped by a deliberately malicious, organized disinformation campaign aimed at creating unwarranted panic, and stating unequivocally that India’s petroleum and LPG supply situation is completely secure and under control.
Even though we are on the 27th day of the Middle East crisis, the Petroleum Ministry claims that India has a total reserve capacity of 74 days and a real stock cover of about 60 days, including crude stocks, product stocks, and the specialized strategic storage in caverns. The ministry also notes that all retail gasoline stations have sufficient supplies.
According to a statement, the nation has enough petrol, diesel, and LPG everywhere, and every Indian citizen has enough supply to last for about two months, regardless of what happens elsewhere.
Crude acquisition for the next two months has also been guaranteed. In a supply scenario like this, the quantity of strategic cave storage is less important since India is fully protected for the foreseeable future. For this reason, the ministry emphasized, any depiction of India’s reserves as being depleted or inadequate should be disregarded with the contempt it warrants.
In the face of the West Asian crisis, which is causing a global fuel shortage and price increases, the Modi government’s choice to lower excise taxes on fuel is a welcome relief to the public.
Modi government’s choice to cut excise taxes highlights its people-centric governance and sensitivity-led decision-making, even as many countries have raised diesel and gasoline costs, he said. This choice deserves praise for Prime Minister Shri Narendra Modi Ji.