India has eliminated key excise duty on petrol and diesel prices to shield refiners from crude oil shocks emanating from the ongoing Iran war in West Asia.
The Ministry of Finance announced that the special additional excise duty and additional excise duty on petrol have been cut to "nil", while for diesel, the government set the special additional excise duty at ₹18.5/litre and the additional excise duty at ₹3/litre.
These measures, effective immediately, arrive as Brent crude remains volatile near $100 a barrel, having recently touched peaks of $119 following military strikes on Iranian infrastructure.
India, which imports ~88% of its crude oil, is seen as most vulnerable to the crisis in West Asia.
Excise Duty Changes for Petrol and Diesel
According to government gazette, the revised rates for special additional excise duty and additional excise duty are as follows:
Motor Spirit (Petrol): The Special Additional Excise Duty is reduced to "Nil" (from any previous rate). The Additional Duty of Excise is also set to "Nil".
Total effective cut: While the document does not explicitly state the previous total rate, it completely removes these two specific duty components for petrol.
High-Speed Diesel: The Special Additional Excise Duty is set at ₹18.5 per litre. The Additional Duty of Excise is set at ₹3 per litre.
