FM Sitharaman, Piyush Goyal hail fuel duty cut as shield against global oil turmoil

New Delhi:  After the government on Friday cut central excise duty on petrol and diesel by Rs 10 per litre each amid the ongoing West Asia crisis, Finance Minister Nirmala Sitharaman said the move would help shield consumers from global volatility.

She said the reduction was aimed at protecting citizens from a potential rise in fuel prices.

“In view of the West Asia crisis, the central excise duty on petrol and diesel for domestic consumption has been reduced by Rs 10 per litre each. This will provide protection to consumers from a rise in prices,” Sitharaman said in a post on X.

She added that the government has also imposed export duties on diesel and aviation turbine fuel (ATF) to ensure adequate domestic availability amid supply uncertainties. In a major move, a special additional excise duty of Rs 50 per litre has been imposed on ATF.

Echoing similar views, Union Commerce and Industry Minister Piyush Goyal termed the move a decisive step to safeguard citizens from global turbulence.

He said the duty cut would provide relief to households, while export curbs on diesel and ATF would help prioritise domestic supply and support economic stability.

“Despite the West Asia crisis causing ripples in global energy markets, the Centre has ensured direct price relief by reducing excise duty on petrol and diesel,” Goyal said.

“By prioritising domestic supply through strategic export duties on diesel and ATF, the government is ensuring that India’s growth engine remains unhindered,” he added.

The ministers emphasised that the government remains committed to insulating the domestic economy from external shocks, even as geopolitical tensions continue to roil global energy markets.

Moreover, Brent crude on Friday hovered around $100 mark, declining over 5 per cent this week so far amid escalating the West Asia conflict with Iran and disruptions in the Strait of Hormuz — a key global energy supply route.