Union Home Minister Amit Shah and EAM S Jaishankar hailed PM Modi's 'people-centric' decision to slash excise duty on petrol and diesel, a move aimed at providing relief to citizens amid global fuel shortages due to the West Asia crisis.
Ministers Hail 'People-Centric' Decision
Union Home Minister Amit Shah on Friday hailed Prime Minister Narendra Modi after the Centre slashed excise duty on petrol and diesel. Taking it to X, Shah said that the step is people-centric, underlining the prevailing situation of fuel shortage across the world due to the West Asia crisis. "As the world is reeling under fuel shortages amid the West Asia crisis, driving up prices globally, the Modi government's decision to cut excise duty on fuel brings much-needed relief to citizens. While many nations have hiked diesel and petrol prices, the Modi govt's decision to reduce excise duty underscores its people-centric governance and sensitivity-led decision-making. Kudos to PM @narendramodi for this decision," Shah wrote.
External Affairs Minister S Jaishankar also commended the Prime Minister for the significant reduction in the excise duty of the fuel supplies, highlighting that it aims to safeguard the affordability of the fuel among citizens. "A swift and decisive intervention by PM @narendramodi to shield 1.4 billion Indians from global price and supply shocks amid the #WestAsia crisis impacting energy & commodity markets. Central excise duty on petrol & diesel for domestic consumption cut by Rs 10/litre each, cushioning consumers from rising prices. Export duties imposed: Rs 21.5/litre on diesel & Rs 29.5/litre on Aviation Turbine Fuel, ensuring adequate domestic availability. A #CitizenFirst approach to safeguard affordability and #EaseOfLiving," he wrote on X.
Details of the Excise Duty Cut
The remarks come after 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: West Asia Crisis
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.
Impact on Market and Retail Prices
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)
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