New Delhi: The Central Government has reduced the additional excise duties on petrol and diesel amid global energy crisis due to the ongoing US-Israel war on Iran and Tehran’s moves to restrict shipping through Strait of Hormuz.
The excise duty on petrol has been reduced from Rs. 13 per litre to Rs. 3 per litre, according to a Government notification. The excise duty on diesel has been slashed from Rs. 10 per litre to nil.
However, industry sources say the reduction is unlikely to translate into lower prices at fuel stations for most consumers as the cut will likely be absorbed by oil marketing companies to offset heavy losses on pump sales.
Global crude prices have risen by almost 50 percent since the United States and Israel launched military strikes against Iran on Feb. 28, triggering sweeping retaliation from Tehran.
The Strait of Hormuz is a vital global energy artery, through which roughly a fifth of the world’s seaborne oil and gas flowed before the conflict, about 20 to 25 million barrels of crude and nearly 10 billion cubic feet of gas daily.
It is a crucial supply route for India, with an estimated 40-50 percent of its crude imports, around 2.2 to 2.8 million barrels per day, traditionally passing through the corridor.
