Amit Shah Praises Modi Government's Fuel Duty Cut Amid Global Crisis
Synopsis
Amid global fuel shortages, Union Home Minister Amit Shah highlights the Modi government's decision to cut excise duty on fuel, providing essential relief to citizens. This strategic move comes as prices rise worldwide due to the West Asia crisis.
Key Takeaways
Excise duty on petrol reduced to Rs 3 per litre.
Excise duty on diesel reduced to zero.
Measure aimed at alleviating the impact of global fuel price surges.
OMCs expected to absorb losses from reduced fuel prices.
Government emphasizes secure fuel supply amid global tensions.
New Delhi, March 27 (NationPress) Union Home Minister Amit Shah stated on Friday that in light of global fuel shortages stemming from the West Asia crisis—which have escalated prices universally—the Modi government's choice to lower excise duty on fuel provides crucial relief to the public.
In a post on the social media platform X, Amit Shah remarked, “As nations grapple with fuel shortages amid the West Asia crisis, leading to a global price surge, the Modi government's excise duty reduction on fuel offers significant relief to our citizens.”
He further noted, “While numerous countries have raised their diesel and petrol prices, the Modi government's step to reduce excise duty highlights its commitment to people-centric governance and thoughtful decision-making. A commendation to PM Shri Narendra Modi Ji for this move.”
In a strategic response to soaring global oil prices, the government has decreased excise duties on petrol and diesel by Rs 10 per litre each, resulting in prices dropping to Rs 3 per litre for petrol and effectively zero for diesel.
The government has also granted duty exemptions for fuel exports and for supplies to foreign-going aircraft.
Additionally, the Centre has revoked a previous 2022 notification, providing customs duty relief on imported aviation turbine fuel (ATF).
This reduction occurs amidst apprehensions of a price increase due to the global energy crisis instigated by the US-Israel conflict with Iran, which has led to a blockade in the Strait of Hormuz.
Oil marketing companies (OMCs) are anticipated to absorb this reduction to mitigate ongoing losses. Currently, OMCs are facing losses estimated at around Rs 48.8 per litre on fuel sales, primarily due to high global crude prices.
Simultaneously, 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 a.m.
On Thursday, the government firmly asserted that India’s petroleum and LPG supply situation remains entirely secure and under control, urging citizens not to fall prey to a “deliberately malicious and coordinated misinformation campaign” aimed at inducing unwarranted panic.
Point of View
The Modi government's recent decision to reduce excise duty on fuel is a proactive measure amid rising global oil prices. This action not only showcases a commitment to citizen welfare but also aims to stabilize the economy during turbulent times. It's a commendable effort to mitigate the impact of an international crisis on the domestic front.
NationPress
29 Jun 2026
Frequently Asked Questions
What is the new excise duty on petrol and diesel?
The government has reduced excise duties on petrol to Rs 3 per litre and diesel to zero, down from Rs 10 per litre.
Why did the government reduce fuel excise duties?
The reduction aims to provide relief to citizens facing rising fuel prices due to global shortages and geopolitical tensions.
How have global oil prices been affected recently?
Global oil prices have declined, with Brent crude futures falling to $105.53 per barrel and US WTI futures to $92.08.
Is India's fuel supply situation secure?
Yes, the government has assured that India's petroleum and LPG supply situation is fully secure and under control.
What are the implications of the global energy crisis on India?
The global energy crisis, particularly affected by the US-Israel conflict with Iran, has prompted the government to act to shield domestic consumers from sharp price hikes.
