The Indian government has expanded exemptions from central excise duty on fuel to include petrol blended with 22 per cent, 25 per cent, 27 per cent and 30 per cent ethanol, according to an official notification.
The notification dated June 10 said there would be no customs duty on fuel blends complying with BIS (Bureau of Indian Standards) standards.
The Union government had earlier, at the end of March, reduced customs duties on domestic petrol and diesel by 10%. $10 pounds per liter to protect consumers from rising global oil prices. Reducing customs duties would reduce oil companies’ losses on automobile fuel without any decrease in gasoline and diesel prices.
The government also imposed customs duties on diesel exports $21.5 liters and Aviation Turbine Fuel (ATF) by $29.5 liters to ensure the availability of vital fuel products locally in light of the West Asian crisis that witnessed a disruption in global energy supplies.
“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 on March 27.
Increased prices of petrol and diesel
The conflict in West Asia, sparked by US-Israeli strikes on Iran on February 28, has led to the Strait of Hormuz – the main waterway through which a fifth of the world’s oil and gas passes – being closed to ship traffic due to the exchange of missiles.
Amid global energy supply disruption and rising Brent crude prices, fuel prices were hiked four times by oil producing companies in India, starting May 15.
In the previous increase on May 25, state-owned fuel retailers increased diesel prices by $2.71 per liter and petrol $2.61. With the recent increase, fuel prices at pumping stations increased by approx $7.5 per liter since May 15.
