Petrol Diesel Price: Big relief for peope of India. The Indian government has made a significant decision concerning petrol and diesel prices. The Special Additional Excise Duty on petrol has been lowered to Rs 3 per liter, while it has been completely removed for diesel. Previously, this duty was Rs 13 per liter for petrol and Rs 10 for diesel. This action comes at a time when the global crude oil market is experiencing significant fluctuations due to the conflict in West Asia, leading to increased pressure on the supply chain.
This decision is anticipated to offer some relief to consumers, although market price trends continue to be unstable. Notably, this government intervention occurs just as Nayara Energy, a major private sector company, has raised petrol prices by Rs 5 per liter and diesel by Rs 3 per liter.
Nayara Energy, which is owned by the Russian company Rosneft, operates over 7,000 petrol stations nationwide. Dealers have voiced concerns regarding the price increase, indicating it could affect fuel demand. They have also suggested the possibility of protests. Additionally, some dealers have reported recent fuel supply reductions.
What will be the effect on oil marketing companies?
This government action is expected to bring relief to everyday consumers, but it may also pose challenges for oil marketing companies. The excise duty reduction could heighten pressure on firms like Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), and Indian Oil Corporation Limited (IOC) to keep prices stable, particularly when international crude oil prices are elevated.
Why was this decision made?
As reported by the Economic Times, the ongoing tensions in West Asia and the rise in crude oil prices have intensified pressure on import-reliant nations like India. In response, the government has sought to alleviate public burden and manage inflation by cutting taxes. However, experts warn that if global crude oil prices stay high, petrol and diesel prices might increase again in the future.
International crude oil prices have surged since the US and Israel launched attacks on Iran in late February, reaching a high of around $119 per barrel before falling to around $100.
