New Delhi, March 27 (IANS). The central government on Friday announced to reduce excise duty on petrol and diesel by Rs 10 per liter. After this, excise duty on petrol has been reduced to Rs 3 per liter and on diesel to zero. Its objective is to limit the impact of the surge in crude oil prices due to the US-Israel-Iran war.
The government has imposed a tax of Rs 21.5 per liter on export of diesel and Rs 29.5 per liter on ATF.
Additionally, the Center has canceled an earlier notification of 2022 and provided relief in excise duty on imported aviation turbine fuel (ATF).
It is expected that Oil Marketing Companies (OMCs) will adjust this cut themselves to compensate for the increasing losses. It is estimated that OMCs are currently incurring a loss of around Rs 48.8 per liter on the sale of fuel, mainly due to the increase in global crude oil prices.
After the tension in the Middle East, a sharp rise in the prices of crude oil has been recorded. In the last one month, the price of benchmark Brent crude has increased by about 40 percent. At present it remains at $ 101 per barrel.
The government on Thursday clearly said that the supply situation of petroleum and LPG in India is completely safe and under control. The government appealed to citizens not to be misled by a “deliberately malicious and well-planned disinformation campaign” aimed at spreading unnecessary panic.
The Petroleum Ministry said India has total reserves of 74 days and currently has actual stocks of about 60 days (which includes crude oil reserves, product reserves and special strategic storages created in caves).
The ministry also said that “today is the 27th day of the Middle East crisis”, and that adequate supplies were available at all retail fuel outlets.
–IANS
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