The central government said on Friday that it had reduced customs duties on local gasoline and diesel by an amount $Finance Minister Nirmala Sitharaman said on Friday that every liter of petrol will protect consumers from rising global oil prices.
At the same time, the government imposed customs duties on diesel exports $21.5 liters and Aviation Turbine Fuel (ATF) by $The Finance Minister added that $29.5 per litre, to ensure that this vital fuel remains available locally amid the West Asian crisis and disruptions in global energy supplies.
The tariff move comes amid disruptions to global energy supplies due to the bottleneck on the main waterway, the Strait of Hormuz – through which a fifth of the world’s gas and oil needs pass – as a result of the war in the Gulf region sparked by US-Israeli strikes on Iran.
“In light of the West Asian crisis, central customs duties on petrol and diesel for domestic consumption have been reduced by… $10 per litre. This will protect consumers from rising prices. presence. “PM @narendramodi has always ensured that citizens are protected from fluctuations in supply and costs of essential commodities,” Sitharaman said in a post on X.
Will this reduce petrol and diesel prices?
The customs duty reductions aim to reduce oil companies’ losses in automobile fuel, without directly reducing gasoline and diesel prices. The same was reflected in gasoline and diesel prices on Friday, as they remained unchanged despite the decision to reduce customs duties.
Elaborating further on the export duty, Sitharaman said: “This will ensure adequate availability of these products for domestic consumption. Parliament has been informed about this.”
The price of standard crude oil rose about 48.22 percent to $108.01 per barrel on Thursday from $72.87 before the start of the West Asian war on February 28.
“As am I [Middle East] “With the conflict approaching one month, its impact on Indian downstream companies has become more pronounced, with petrol and diesel accounting marketing margins turning negative, at -25/45 rupees per liter for the current fortnight,” Sabri Hazarika and Arya Patel of Emkay Global Financial Services Ltd said in a research report.
Petroleum and Natural Gas Minister Hardeep Puri added that oil marketing companies are almost losing $24 per liter of gasoline $30 per liter on diesel, and the duty reduction will provide much-needed relief.
“Global crude oil prices have risen over the past month from about $70 per barrel to about $122 per barrel. As a result, gasoline and diesel prices have risen for consumers around the world. Prices have risen by about 30% to 50% in Southeast Asian countries, 30% in North American countries, 20% in Europe, and 50% in African countries,” Puri said in his social media post.
He added: “The Modi government had two options – either increase prices significantly for the citizens of Bharat as all other countries did or bear the brunt on its finances so that Indian citizens are insulated from international fluctuations. Hon’ble Prime Minister @Narindrama Ji, in line with his government’s commitment over the last 4 years since the conflict in Russia and Ukraine began, has decided to strike a financial blow to its finances once again to protect the Indian citizen.”
Puri pointed out that the government has resorted to significantly reducing tax revenues to reduce the huge losses of oil companies amid the significant rise in global prices.
“At the same time, the export tax has been imposed as global prices of petrol and diesel have risen significantly and any refinery exporting to foreign countries will have to pay the export tax. I express my gratitude to Hon’ble Prime Minister Narendra Modi Ji and Hon’ble Foreign Minister @nsitharaman Ji for this very timely and bold and visionary statement.”
