The move comes amid rise in crude oil prices amid the Middle East conflict.
While the public sector oil marketing companies have kept the retail prices unchanged, private retailer Nayara Energy on Thursday increased the retail prices of petrol by Rs 5.3 per litre and diesel by Rs 3 per litre.
India imports about 85 per cent of its crude oil requirements. Out of this 40- 50 per cent of crude oil are shipped through the Strait of Hormuz which is the vital artery for global energy trade.
The Union government has assured that India’s crude supply position is secure and there is no shortage of petrol and diesel.
“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 rise in prices,” Union Finance Minister Nirmala Sitharaman said in a post on X.
Further, duties have been imposed on exports of Diesel at Rs 21.5 per litre and on Aviation Turbine Fuel at Rs 29.5 per litre. This will ensure adequate availability of these products for domestic consumption. The Parliament has been notified about the same, she added.
In a post on X, Union Minister of Petroleum and Natural Gas Hardeep Singh Puri noted that the international crude prices have gone through the roof in the last 1 month from around 70 dollars/barrel to around 122 dollars/barrel and consequently, petrol and diesel prices for consumers have gone up all over the world.
Prices have increased by around 30-50 per cent in South East Asian countries, 30 per cent in North American countries, 20 per cent in Europe and 50 per cent in African countries, he said.
The Modi Government had two choices- either increase prices drastically for citizens of Bharat as all other nations have done or bear the brunt on its finances so that Indian citizen is insulated from international volatility, Puri said.
“Government has taken a huge hit on it taxation revenues to ensure very high losses of oil companies (approximately 24 Rs/litre for petrol and 30 Rs/litre for diesel) at this time of sky high international prices are reduced,” he said.
At the same time, export tax has been levied as international prices of petrol and diesel have skyrocketed and any refinery exporting to foreign nations will have to pay export tax, Puri said.
The global situation remains in flux, and we are closely monitoring developments across energy, supply chains, and essential commodities on a real-time basis, he said.
Puri said all necessary steps are being taken to ensure uninterrupted availability of fuel, energy, and other critical supplies for our citizens. We are fully prepared to handle emerging challenges.
India has consistently demonstrated resilience in the face of global uncertainties, and we will continue to act in a timely, proactive, and coordinated manner, he said.
Rumours of a lockdown in India are completely false. Let me state this clearly, there is no such proposal under consideration by the Government of India, Puri said.
In such times, it is important that we remain calm, responsible, and united. Attempts to spread rumours and create panic in such a situation are irresponsible and harmful, he added.
