The government of India has extended the central excise duty exemptions on fuel to petrol blended with 22 per cent, 25 per cent, 27 per cent and 30 per cent ethanol, according to an official notification.
There will be a nil excise duty rate for fuel blends that conform to BIS standards (Bureau of Indian Standards), the notification dated June 10 said.
The Union government previously, in March end, reduced excise duty on domestic petrol and diesel by ₹10 per litre each to protect consumers from rising international oil prices. The duty cuts will reduce oil companies’ losses on auto fuels without any reduction in pump prices of petrol and diesel.
The government had also imposed duties on exports of diesel by ₹21.5 per litre and aviation turbine fuel (ATF) by ₹29.5 a litre to ensure vital fuel products are domestic available in view of the West Asia crisis that has witnessed disruptions in global energy supplies.
“In view of the West Asia crisis, the central excise duty on petrol and diesel for domestic consumption has been reduced by ₹10 per litre each. This will provide protection to consumers from rise in prices. Hon. PM @narendramodi has always ensured that citizens are protected from vagaries of supply and costs of essential goods,” Sitharaman had said in a post on X on March 27.
Petrol, diesel price hike
The West Asia conflict, which was triggered by the February 28 US-Israeli strikes on Iran, has virtually shut off the Strait of Hormuz — key waterway through which a fifth of world’s oil and gas travel — for vessel movement due to the missile exchange.
Amid disrupted global energy supplies and soaring brent crude prices, fuel rates have been hiked four times by oil making companies in India, beginning May 15.
In the previous hike on May 25, state-owned fuel retailers increased diesel prices by ₹2.71 per litre and petrol by ₹2.61. With the last increase, fuel prices at the pump went up by about ₹7.5 per litre since May 15.
