Nirmala Sitharaman Responds to Petrol Diesel Duty Cut Decision

The central government has taken a significant step to reduce the burden of rising fuel prices on citizens. A major reduction of Rs 10 per litre in excise duty on petrol and diesel has been announced, bringing the levy on petrol down to Rs 3 per litre while diesel duty has been reduced to zero.

Finance Minister Nirmala Sitharaman reacted to the decision by stating that the move reflects the government commitment to protect people from sudden fluctuations in global fuel markets. In a message shared on social media, she said the decision demonstrates the government focus on safeguarding consumers from international energy price instability.

Export Duty Introduced to Protect Domestic Supply

Along with the petrol diesel duty cut, the government has also introduced export duties on certain fuel products to maintain adequate domestic availability. Diesel exports now attract a duty of Rs 21.5 per litre, while aviation turbine fuel exports carry a duty of Rs 29.5 per litre.

This measure is aimed at preventing fuel companies from diverting large quantities of fuel to international markets for higher profits. By imposing export duties, the government intends to ensure that domestic fuel requirements remain a priority.

Global Oil Uncertainty Behind the Decision

The policy move comes at a time when global energy markets are facing uncertainty. Rising tensions in West Asia and developments around the Strait of Hormuz have raised concerns about global oil supply.

A large portion of the world crude oil and gas shipments passes through this strategic route, with an estimated 20 to 25 million barrels moving through the strait every day. Anticipating potential supply disruptions, the Indian government has acted in advance by cutting fuel duties and regulating exports to stabilize domestic prices.