Excise Cut Benefits Oil Companies...Not Consumers – Central Government

The central government on Friday announced a reduction of ₹10 per litre in excise duty on petrol and diesel. However, it clarified that this cut will not reduce retail fuel prices for consumers. The move is aimed solely at helping state-owned oil marketing companies offset their mounting losses.

According to the Petroleum Ministry, companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum are currently incurring losses of around ₹26 per litre on petrol and ₹81.90 per litre on diesel. The total daily losses across these firms amount to approximately ₹2,400 crore. The recent excise reduction is intended to cover part of these losses and ensure uninterrupted fuel supply.

The government also imposed new duties on diesel exports to prioritize domestic demand amid rising international oil prices. International crude prices surged from $70 to $122 per barrel in the past month due to West Asian tensions. Despite global increases of 20–50 percent, India has maintained stable fuel prices, with the government absorbing costs to protect consumers.