Centre govt cuts excise duty on petrol, diesel by Rs 10 per litre each

The government on Friday slashed excise duties on petrol and diesel by Rs 10 per litre each, bringing them down to Rs 3 per litre for petrol and zero for diesel, in a move aimed at cushioning the impact of surging global oil prices.

The government has also provided exemptions on duties for fuel exports and supplies to foreign-going aircraft.

Separately, the Centre has rescinded an earlier 2022 notification and granted customs duty relief on imported aviation turbine fuel (ATF).

The reduction comes amid fears of a



price hike due to the global energy crisis, triggered by the US-Israel conflict with Iran and the resultant blockade of the Strait of Hormuz.

Oil marketing companies (OMCs) are expected to absorb the reduction to offset mounting losses. OMCs are currently estimated to be incurring losses of around Rs 48.8 per litre on fuel sales, largely due to elevated global crude prices.

Meanwhile, global oil prices declined, with Brent crude futures falling 2.29 per cent to $105.53 per barrel. US WTI futures also dropped 2.54 per cent to $92.08 as of 8:50 am.