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Separately, the Centre has rescinded an earlier 2022 notification and granted customs duty relief on imported aviation turbine fuel (ATF).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.
The government on Thursday categorically stated that India's petroleum and LPG supply situation is fully secure and under control, calling upon citizens not to be misled by a "deliberately mischievous, coordinated campaign of misinformation" that is being carried out to spread unjustified panic.
India has 74 days of total reserve capacity, and actual stock cover is around 60 days right now (including crude stocks, products stocks and the dedicated strategic storage in caverns), even as "we are on the 27th day of the Middle East crisis", the Petroleum Ministry said, adding that all retail fuel outlets have enough supplies.
"There is no shortage of petrol, diesel, or LPG anywhere in the country," it said in a statement, adding that nearly two months of steady supply is available for every Indian citizen, regardless of what happens globally.
"Next 2 months of crude procurement has also been secured. India is completely secure for the next many months, and the quantity in strategic cavern storage becomes secondary in such a supply situation. Therefore, any representation that India's reserves are depleted or insufficient should be dismissed with the disdain it deserves," the ministry highlighted.
IANS
