Excise duty cut on petrol, diesel will bring relief to people: Athawale

Union ministers, led by Ramdas Athawale, lauded the Centre's decision to reduce excise duty on petrol and diesel, calling it a 'pro-people' move providing 'relief' amid rising global crude prices and geopolitical tensions.

Union Minister of State (MoS) for Social Justice and Empowerment Ramdas Athawale on Friday welcomed the government's decision to reduce the excise duty on petrol and diesel, saying that the decision will bring "relief" to the people. "The excise duty reduction will provide relief to the people...This decision is welcome. Prime Minister Modi's government works for the development of all and is concerned about all sections of society...," Athawale told ANI.

Ministers Hail 'Pro-People' Decision

Other Union ministers also welcomed the Centre's decision to reduce the excise duty on petrol and diesel. Petroleum and Natural Gas Minister Hardeep Singh Puri said that while many countries have imposed strict fuel conservation measures and raised prices, India has prioritised affordability and supply stability. "When the rest of the world has been taking drastic fuel conservation measures such as odd-even, 4-day work weeks, school and office closures and increasing fuel prices by 20-30%, India under PM Narendra Modi Ji remains an oasis of energy security, availability and affordability," Puri said in a post on X.

Union Minister Jyotiraditya M Scindia lauded the Central government's decision, calling it a "pro-people decision" at a critical moment in global energy markets. In a post shared on X, Scindia credited Prime Minister Narendra Modi for acting with "strong foresight and resolve" amid rising volatility in international energy markets. He said the reduction in excise duty on petrol and diesel would help cushion consumers against price fluctuations triggered by global disruptions, ensuring that the burden does not fall on the common man.

Union Minister for Railways and Electronics and IT Ashwini Vaishnaw hailed the Centre's reduction of excise duty on petrol and diesel by Rs 10 per litre to shield citizens from rising global crude prices. "With global crude prices surging, many nations passed the burden to citizens. Bharat chose to protect its poor and middle-income families. PM Narendra Modi Ji has reduced excise duty on petrol and diesel by 10 per litre, while imposing export duties on diesel and ATF to secure domestic supply," Vaishnaw said in a post on X.

Details of the Excise Duty Reduction

The Central government reduced excise duty on petrol to Rs 3 per litre and brought it down to zero for diesel, as per a Gazette notification issued under the provisions of the Central Excise Act, 1944. Additionally, a windfall tax of Rs 21.5 per litre has been imposed on diesel exports.

Geopolitical Context and Market Impact

The decision follows escalating tensions in West Asia, particularly 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.(ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)