In a major relief move, the government has announced a Rs 10 per litre excise duty cut on petrol and diesel, aiming to control fuel prices amid rising global crude oil rates. The petrol diesel excise duty cut of Rs 10 per litre has come into effect immediately.
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Big Relief for Consumers After Petrol Diesel Excise Duty Cut
The decision to reduce petrol diesel excise duty by Rs 10 per litre is expected to:
- Prevent an immediate increase in fuel prices
- Reduce burden on oil marketing companies
- Provide relief to consumers across the country
Despite rising crude oil prices globally, this step ensures that petrol and diesel prices remain stable in India.
New Excise Duty Structure Explained
As per the latest changes:
Petrol
- Special additional excise duty reduced from Rs 13 to Rs 3 per litre
- Basic excise duty: Rs 1.40 per litre
- Agriculture infrastructure cess: Rs 2.50 per litre
- Road and infrastructure cess: Rs 5 per litre
Diesel
- Special additional excise duty reduced from Rs 10 to zero
- Basic excise duty: Rs 1.80 per litre
- Agriculture infrastructure cess: Rs 4 per litre
- Road and infrastructure cess: Rs 2 per litre
Why Petrol Diesel Excise Duty Was Reduced
The move comes after a sharp rise in crude oil prices due to tensions in West Asia. The increase in oil prices had created pressure on companies to raise fuel prices.
Key reasons behind the decision:
- Rising global crude oil prices
- Need to protect consumers from price hikes
- Maintain supply stability in domestic markets
Impact on Fuel Prices and Exports
The petrol diesel excise duty cut of Rs 10 per litre will also:
- Apply to fuel exports to neighboring countries
- Help maintain sufficient supply within India
- Ensure companies do not increase retail fuel prices immediately
Additionally, export duties have been imposed on diesel and aviation fuel to improve domestic availability.
Current Fuel Prices in India
As per available data:
- Petrol price in Delhi: Rs 94.77 per litre
- Diesel price in Delhi: Rs 87.67 per litre
Fuel prices have remained unchanged since October 2024, and the latest excise duty cut on petrol and diesel helps keep them stable.
The petrol diesel excise duty cut of Rs 10 per litre is a significant step to control fuel prices in India. With global oil rates rising, this move provides relief to consumers and ensures price stability, preventing an immediate hike in petrol and diesel rates.
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