India Slashes Fuel Excise Duties Amid Volatile Oil Prices
India reduced its special excise duties on petrol and diesel in response to volatile fuel prices due to the Iran conflict. This move aims to mitigate the impact on oil marketing companies. Despite challenges, Prime Minister Modi assures adequate supply arrangements for essential sectors like electricity and agriculture.
In a strategic response to ongoing fuel price volatility, India has announced a significant reduction in special excise duties on petrol and diesel. The finance ministry confirmed this adjustment on Thursday, lowering petrol duty from 13 rupees to 3 rupees per litre and cutting diesel duty to zero.
The adjustments come amid heightened tensions due to the U.S.-Israeli conflict with Iran, impacting crude oil imports via the Strait of Hormuz. The government's move follows economic analyses predicting a substantial fiscal impact of approximately 1.55 trillion rupees annually.
Despite these challenges, Prime Minister Narendra Modi reassured the public of ongoing efforts to secure adequate supplies for critical sectors, including fertilizers for the summer sowing season and coal for electricity demand. India continues to import over 90% of its oil, primarily from the Middle East.
(With inputs from agencies.)
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