Who is this 'favour' for? Khera on govt's fuel excise duty cut

Congress's Pawan Khera slammed the govt's excise duty cut on fuel, arguing it benefits oil companies, not the public. He said consumers will still pay the same price and questioned for whom this 'favour' was being bestowed by the Centre.

Excise Cut Benefits Oil Companies, Not Consumers: Khera

Congress leader Pawan Khera on Friday questioned the claims made by the Narendra Modi government that the announced excise duty cuts on petrol and diesel provide relief for the common public, arguing that it benefits oil marketing companies instead of consumers. He said that the consumers will continue to pay unchanged retail prices at fuel stations.

Speaking to ANI, Khera asked for whom this 'favour' was being bestowed. He further pointed out that it pertained to what the government calls a "Special Additional Excise Duty", which implied that it was "superfluous".

"For whom was it reduced? Was it reduced for you or for me? If you and I go out right now and take our car to get petrol filled, will we pay less? We will still pay the same amount we were paying before. So, on whom is this 'favour' being bestowed, claiming that they have reduced it?" he asked. "This is called 'Special Additional Excise Duty'. The very name implies that it is superfluous. This unnecessary excise (duty) that you had imposed on us, you are reducing it for the Oil Marketing Companies (OMCs), not for us. We will still pay the same as we were paying," Khera added.

Govt Accused of Repeated Excise Hikes

The Congress leader also accused the government of repeatedly increasing excise duties over the years. He claimed that in the past eleven and a half years, excise duty had been raised 12 times, generating massive revenues for the Centre. "You have increased the excise duty 12 times in the last eleven and a half years. In these last eleven and a half years, you have earned 982 crore rupees every single day from excise duty, and now you come to impose this 'favour' on us?" he remarked.

Comparison with 2014 Fuel Prices

Drawing a comparison with previous years, Khera noted that in May 2014, when crude oil prices were significantly higher at around $106 per barrel, retail fuel prices were much lower. "In May 2014, when our government left--when we lost the election--the international price of crude oil was $106 per barrel. At that time, petrol was available for Rs 71.71, and diesel was Rs 56.71. Today, the international price is around $70 per barrel--almost half. But you are selling petrol for Rs 94-95. This is all due to that 'miraculous' excise duty they have imposed on us," he further said.

Khera Criticises Petroleum Minister's 'Burden' Claim

Taking aim at Union Petroleum Minister Hardeep Singh Puri, Khera criticised the government's claim that it was absorbing the financial burden to protect citizens. He argued that government revenues ultimately belong to the people, questioning the narrative that the Centre is making a sacrifice. "Look at the audacity of Hardeep Puri. He says they want to provide relief to the people of India, so they don't face the burden, and therefore, the Government of India is taking the burden. The Government of India is the government of the people of India. The money belongs to the people of India," Khera added.

Government Defends Excise Duty Adjustments

Earlier, Hardeep Singh Puri defended the government's move, stating that the Centre had chosen to "take a hit on its own finances" to shield Indian consumers from rising global energy prices. He noted that crude oil prices had jumped from around $70 per barrel to $122 per barrel in the past month, leading to significant fuel price hikes across many parts of the world.

According to the government, the excise duty on petrol has been reduced to ₹3 per litre, while it has been brought down to zero for diesel. Additionally, a windfall tax of ₹21.5 per litre has been imposed on diesel exports to improve domestic availability.

Officials have maintained that the move is aimed at cushioning the impact of global volatility, particularly amid rising geopolitical tensions in West Asia that have disrupted key oil supply routes, including the Strait of Hormuz. Earlier, the government also assured that fuel supplies remain stable across the country, with adequate stocks available and refineries operating at high capacity. (ANI)

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