Petrol, diesel prices: Centre bearing ₹10 excise cut burden, says Piyush Goyal
Synopsis
Union Minister Piyush Goyal has put a number to the Centre's fuel relief effort — a ₹10 excise cut and a 90% fertiliser subsidy burden running into lakhs of crores. With global commodity prices still elevated, the government is betting that fiscal sacrifice now prevents a far costlier political and economic fallout later.
Key Takeaways
Union Minister Piyush Goyal confirmed the Centre reduced excise duty on fuel by ₹10 to provide consumer relief.
The government is absorbing 90 per cent of fertiliser subsidies, with an additional outgo of ₹3,000 crore , to keep farmer prices unchanged.
Maharashtra 's VAT cut on aviation turbine fuel is expected to benefit the civil aviation and tourism sectors.
Goyal said PM Modi 's security is paramount and any reduction in cover was not due to opposition pressure.
The subsidy and duty measures are aimed at shielding consumers and farmers from elevated global commodity prices.
Union Minister Piyush Goyal on Friday, 15 May said the Centre has shouldered a substantial financial burden by slashing excise duty on fuel and sustaining heavy fertiliser subsidies, shielding farmers and consumers from surging global commodity prices. Speaking on the sidelines of an event in Mumbai, Goyal defended the government's fiscal stance amid mounting pressure on public finances.
Excise Duty Cut and Fiscal Burden
Goyal said the Centre had reduced excise duty on petrol and diesel by ₹10 to deliver direct relief to citizens. He framed the move as a deliberate sacrifice of revenue in the public interest, even as global crude prices remain elevated.
'The central government has taken more burden on itself. The excise has been reduced by ₹10,' Goyal said. He added that the government was absorbing the cost rather than passing it on to end consumers.
Fertiliser Subsidies for Farmers
On the agriculture front, Goyal said the Centre is bearing fertiliser subsidy costs running into lakhs of crores to ensure farmers continue paying pre-hike prices. He cited an additional outgo of ₹3,000 crore on fertiliser support, with the government covering up to 90 per cent of the subsidy burden.
'Our farmers have to pay the same old price, no increase has been made. And because of this, 90 per cent subsidy has to be given by the central government by lakhs of crores,' Goyal said. This comes amid global fertiliser prices remaining elevated following supply disruptions linked to the Russia-Ukraine conflict.
Maharashtra VAT Cut on Aviation Fuel
Commenting on Maharashtra government's decision to reduce Value Added Tax (VAT) on aviation turbine fuel, Goyal said the move would provide meaningful relief to the civil aviation sector, which he described as being 'in a lot of pressure.' He added that tourism would also benefit significantly from the measure.
Goyal also remarked that opposition-ruled states should take note of such policy decisions, suggesting that few such states remain and that they could draw lessons from Maharashtra's approach.
PM Modi's Security Arrangements
Asked about Prime Minister Narendra Modi's security arrangements, Goyal said the government treats the Prime Minister's safety as paramount and that any reduction in security cover was not driven by opposition pressure.
'He is the Prime Minister of the country and a leader of the world. We are worried about every aspect of his security,' Goyal said, urging that there be no compromise on the Prime Minister's protection.
With global energy and commodity prices remaining volatile, the government's ability to sustain these subsidies and duty concessions without widening the fiscal deficit will be closely watched in the months ahead.
Point of View
But the sustainability question is rarely asked loudly enough. India's subsidy bill has historically ballooned during commodity supercycles, and the current global energy environment shows no sign of easing. Goyal's framing — that the government is 'taking burden on itself' — is politically effective, but it sidesteps the structural issue: India's fuel pricing mechanism has never been fully delinked from political cycles. The Maharashtra VAT cut on aviation fuel is a welcome sectoral move, but the broader pattern of Centre-and-state fiscal coordination on energy pricing remains ad hoc rather than systemic.
NationPress
3 Jul 2026
Frequently Asked Questions
Why did the Centre cut excise duty on petrol and diesel?
The Centre reduced excise duty on petrol and diesel by ₹10 to provide relief to consumers amid rising global crude oil prices. Union Minister Piyush Goyal said the government chose to absorb the revenue loss rather than pass the burden on to citizens.
How much is the Centre spending on fertiliser subsidies?
According to Goyal, the Centre is covering up to 90 per cent of fertiliser subsidy costs, with an additional outgo of ₹3,000 crore, to ensure farmers continue paying pre-hike prices. The total subsidy bill runs into lakhs of crores.
What is the impact of Maharashtra's VAT cut on aviation fuel?
Maharashtra's reduction in VAT on aviation turbine fuel is expected to ease cost pressure on airlines and provide a boost to the civil aviation and tourism sectors, both of which have been under financial stress.
Did the government reduce PM Modi's security due to opposition pressure?
No. Piyush Goyal said any changes to Prime Minister Narendra Modi's security arrangements were not driven by opposition pressure, adding that the government treats the PM's safety as its highest priority.
Who benefits from the Centre's excise duty and subsidy measures?
The excise duty cut on fuel benefits all petrol and diesel consumers, while the fertiliser subsidy directly protects farmers from higher input costs. Both measures are aimed at cushioning the impact of elevated global commodity prices on Indian households and the agriculture sector.
