India has cut special excise duty on petrol to Rs 3 per litre from Rs 13 and reduced diesel duty to zero from Rs 10 per litre. The move comes as global oil prices have stayed highly volatile after the conflict-linked disruption in the Strait of Hormuz pushed crude above the $100 per barrel mark.
The government has also imposed fresh windfall taxes on diesel and aviation fuel exports to partly offset the revenue hit. Officials said the decision is meant to protect consumers, reduce pressure on inflation, and ease the burden on state-run oil marketing companies that have been absorbing losses instead of passing on the full rise in crude prices.
For Indian consumers, the key takeaway is that the government is trying to avoid immediate fuel price pain at retail pumps even as global oil markets remain unstable.
