No fuel price hike, no lockdown; Central govt reduces excise duty on petrol, diesel by Rs 10

NEW DELHI: Amidst the West Asian conflict, the central government reduced the additional import duty on petrol and diesel by Rs 10 per litre, which came as a relief to both oil companies and the public. The move is to avoid a rise in fuel prices. The additional duty on petrol was reduced from Rs 13 to Rs 3. Diesel has been exempted.

To ensure more fuel in the domestic market, an export duty of Rs 21.5 per litre was imposed on diesel and Rs 29.5 per litre on aviation turbine fuel (ATF). As oil prices soared in the international market, public sector oil companies were incurring losses. With the reduction in the additional tax, the losses of the companies decreased, along with the chances of increasing fuel prices.

Meanwhile, the normal import duty will continue. It is Rs 11.90 per litre on petrol and Rs 7.8 per litre on diesel. Union Petroleum Minister Hardeep Singh Puri shrugged off rumours of ‘energy lockdown’ in the country.

Following the lockdown rumours, long queues had formed in front of petrol pumps in rural areas. People had thronged to buy fuel in large cans.

It is estimated that oil companies suffered losses of Rs 24 per litre on petrol and Rs 30 per litre on diesel due to the increase in crude oil prices from $70 to $122 per barrel following the war. To compensate for this, the private company Nayara increased fuel prices.

Providing relief to the hotel and restaurant sector, the commercial LPG quota for states has been increased by 20 per cent. Earlier, too, the quota was increased by 20 per cent. The ship Jag Vasant, carrying 42,000 metric tonnes of LPG, arrived at the Kandla port in Gujarat on Friday. The ship Pine Gas, which crossed the Strait of Hormuz with LPG, will also reach the Indian coast soon.