Excise Duty Cut from ₹13 to ₹3 on Petrol, Zero on Diesel… Government Offers Major Relief Amidst Fuel Crisis

New Delhi: Amidst a global crisis in crude oil supply, the government has provided significant relief to oil companies. The Central Government has reduced the excise duty on petrol and diesel. The excise duty on petrol has been slashed by ₹10, bringing it down to ₹3, while the excise duty on diesel has been reduced to zero.

The government has extended this major relief to oil companies because, during this period of crisis, they were compelled to purchase crude oil at high prices; it is in response to this situation that the government has granted this relief. However, the Value Added Tax (VAT) levied by state governments will remain applicable. Previously, the excise duty stood at ₹13 per liter for petrol and ₹10 per liter for diesel. Now, however, a reduction of ₹10 has been implemented.

In Delhi, the price of petrol is ₹94.77 per liter, and diesel is priced at ₹87.67 per liter. In Noida, petrol is at ₹94.85 and diesel at ₹87.98. Similarly, in Mumbai, petrol costs ₹103.54 per liter and diesel ₹90.03 per liter. Likewise, in Chennai, petrol prices range between ₹100.80 and ₹101.06 per liter, while diesel is available between ₹92.38 and ₹92.61 per liter. In Lucknow, petrol prices range from ₹94.69 to ₹94.84 per liter, and diesel from ₹87.81 to ₹88.05 per liter.

Will Petrol and Diesel Prices Decrease?
This reduction signifies that the government has provided relief to the oil companies. Government sources indicate that this move will not result in any reduction in the retail prices of petrol and diesel. The current prices will remain unchanged; there will be no alteration in the retail rates of petrol and diesel.

Nayara Hikes Fuel Prices
On Thursday, Nayara Energy—one of the country’s private oil companies—increased the prices of petrol and diesel. It had hiked the price of petrol by ₹5 and diesel by ₹3. The company stated that private firms do not receive relief from the government; consequently, it was compelled to raise fuel prices to offset its losses. The company operates over 6,900 petrol pumps across the country.

Adequate Oil Reserves in the Country
It is noteworthy that, over the past few days, a chaotic situation had prevailed at petrol pumps in several cities across the country. People were engaging in panic buying of petrol and diesel. Against this backdrop, the government took this decision in an effort to reassure the public that there is no shortage of oil in India. Oil companies are procuring oil from abroad and possess adequate reserves. The Central Government, too, has repeatedly clarified that there is no shortage of petrol or diesel within the country. Oil reserves are available domestically, and there is no need for people to panic.