Gasoline prices today: Petrol prices in New Delhi on Saturday remained unchanged at Rs 94.77 per litre, while diesel prices settled at Rs 87.67 per litre. Likewise, Mumbai is witnessing petrol price at Rs 103.54 per litre and diesel at Rs 90.03, unchanged from yesterday.
The government reduced customs duties on gasoline and diesel Conflict in West Asia led to sharp increases in global crude oil prices. Since February 28, when US and Israeli strikes targeted Iranian facilities, Brent crude briefly rose to $119 a barrel before falling to around $100. Likewise, the price of WTI rose from $70 before the conflict to over $92, leading to supply shocks globally.The ongoing conflict between the United States and Iran has disrupted oil supply chains and sent crude oil prices soaring around the world.
India’s dependence on oilIndia imports about 88% of its crude oil needs, nearly half of which is transported through the Strait of Hormuz, a critical sea strait located between the Persian Gulf and the Gulf of Oman.Any interruption here poses a direct threat to the availability of local fuel. Tehran’s warnings to ships and the withdrawal of insurance companies complicated the movement of tankers, affecting supplies.Reducing customs duties by the governmentTo protect consumers from rising global crude oil prices, the Center reduced excise duty on petrol from Rs 13 to Rs 3 per litre, and completely removed it on diesel (from Rs 10).
The reduction aims to maintain the stability of retail prices and prevent the direct burden on citizens.No increase or decrease in pricesReducing tariffs will not lead to lower gasoline and diesel prices at pumping stations, as the aim of the reduction is to prevent the need to raise prices in line with global prices. Oil marketing companies absorb higher input costs, ensuring that retail prices do not rise amid global volatility.Financial implications of reducing customs dutiesThis reduction is expected to result in a revenue loss of around Rs 7,000 crore over the next 15 days, CBIC Chairman Vivek Chaturvedi said. The measure offsets potential increases of Rs 24 per liter for petrol and Rs 30 per liter for diesel that were necessary due to higher global crude oil prices.Shipping and export measuresThe government has imposed export duty of Rs 21.5 per liter on diesel and Rs 29.5 per liter on ATF to ensure domestic availability and prevent windfall in international markets.The government will reassess the special additional tariff, also known as windfall tax, on diesel and aviation turbine fuel every two weeks, Chaturvedi said on Friday. Speaking to the media, he explained that the tax was imposed to ensure sufficient domestic supplies of this fuel.The government expects to collect around Rs 1,500 crore from this duty in the first two weeks, he noted. To discourage overseas sales and prioritize domestic availability, export duties of Rs 21.5 per liter have been imposed on diesel fuel and Rs 29.5 per liter on aviation turbine fuel, with the revised rates coming into effect from Friday.The windfall tax was initially introduced in July 2022 to limit extraordinary gains made by refiners after the conflict between Russia and Ukraine and was later withdrawn in December 2024. Special retailer price differencesNayara Energy, India’s largest private fuel retailer, has increased petrol by Rs 5 per liter and diesel by Rs 3 per liter at its 6,967 outlets to offset input costs. In contrast, Jio-BP, which operates 2,185 outlets, maintained retail prices despite heavy losses.Strategic local measuresIndia maintains strategic reserves of 53,000 metric tons of crude oil, with plans to expand to more than 65,000 metric tons, Prime Minister Narendra Modi said in the Rajya Sabha.Ethanol blending has reduced crude oil imports by 4.5 lakh barrels annually. Increased refining capacity, subway expansion, and railway electrification have also reduced reliance on diesel, helping to stabilize domestic consumption of the fuel.Diplomatic efforts and global sourcesPrime Minister Modi has been actively working with Iran, the US and other countries to ensure safe transportation of oil and LPG tankers. India diversified its import sources from 27 to 41 countries and bought Russian crude to fill supply gaps.The government also formed seven groups empowered to manage fuel, supply chains and logistics.