New Delhi, March 27 (NationPress) In a significant move aimed at mitigating the effects of rising global oil prices, the Central Government has reduced excise duties on petrol and diesel by Rs 10 per litre each, lowering them to Rs 3 per litre for petrol and eliminating it for diesel. Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, stated on Friday that the government, led by Prime Minister Narendra Modi, faced two alternatives: either to impose steep price increases on citizens, as many other nations have done, or to absorb the financial impact to protect Indian consumers from international market fluctuations.

Puri highlighted that Modi's administration has consistently prioritized the welfare of the Indian populace, especially since the onset of the Russia-Ukraine conflict. He remarked that the Prime Minister chose to once again absorb financial losses to provide relief to the citizens.

Taking to social media platform 'X', he noted, “International crude prices have surged dramatically over the past month, climbing from approximately $70 per barrel to nearly $122 per barrel. As a result, fuel prices for consumers worldwide have escalated, with increases ranging from 30% to 50% in various regions, including Southeast Asia, North America, Europe, and Africa.”

Puri reiterated the choices facing the Modi administration, emphasizing the government's commitment to safeguard Indian citizens from external price shocks despite significant revenue losses.

He stated, “The government has incurred substantial losses on its taxation revenues to lessen the financial burden on oil companies, which are currently facing losses of around Rs 24 per litre for petrol and Rs 30 per litre for diesel due to soaring international prices. Additionally, an export tax has been imposed as the global prices of petrol and diesel have skyrocketed. I express my gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for this decisive and visionary action!”

Furthermore, the government has also offered duty exemptions for fuel exports and supplies to international flights.

In a separate measure, the Centre has revoked a previous 2022 notification to provide customs duty relief on imported aviation turbine fuel (ATF).

This reduction arrives amid concerns of potential price increases due to the global energy crisis, exacerbated by the tensions between the US and Iran and the resulting blockade of the Strait of Hormuz.

Oil marketing companies (OMCs) are anticipated to absorb these cuts to mitigate their growing losses, which are currently estimated at around Rs 48.8 per litre on fuel sales, primarily driven by elevated global crude costs.

Meanwhile, global oil prices have seen a decline, with Brent crude futures dropping 2.29% to $105.53 per barrel, while US WTI futures fell 2.54% to $92.08 as of 8:50 am.