The Indian government has recently taken a major decision, which has become relief news for everyone from the general public to oil companies. Under India Cuts Petrol and Diesel, excise duty on petrol and diesel has been slashed by βΉ10 per litre. The decision came into effect through a notification on March.
The move is aimed at mitigating the impact of rising international crude oil prices (Brent crude). Tensions in West Asia have pushed oil prices up sharply, posing a challenge for an import-dependent country like India.
The government’s decision will bring great relief to state-owned oil companies like Indian Oil Corporation and Bharat Petroleum. According to reports, these companies were losing around βΉ20,000 crore a day.
However, most importantly, despite India Cuts Petrol and Diesel, there has been no change in the retail prices of petrol and diesel for the general public. In Delhi, petrol remained unchanged at βΉ94.77 and diesel at βΉ87.67 per litre.
The government also increased export duties on diesel and aviation fuel to maintain oil availability in the domestic market. The move shows that the government is currently prioritizing supply within the country.
Politically speaking, some ministers are describing the decision as a βpeopleβs reliefβ, while critics say why it was taken just before state elections. Politics on the issue could also intensify.
The impact of India Cuts Petrol and Diesel for the third time is expected to be evident in the coming months. If crude oil prices rise further, the government may have to take further steps.
Finally, the decision is an attempt to maintain the economic balance of the country, which is striving to strike a balance between the oil companies, the government and the people.
