The Indian government has reduced excise duty on petrol and diesel by ₹10 per litre each, while imposing levies on diesel and aviation turbine fuel (ATF) exports.
The move aims to ease the financial strain on state-run oil retailers and ensure adequate domestic stocks, despite consumers not seeing a reduction in pump prices.
The estimated revenue loss from the cut is ₹1.70 lakh crore if it lasts the full financial year.
Finance Minister Nirmala Sitharaman announced the reduction in special additional excise duty (SAED) on X, saying it will provide protection to consumers from price rises.
State-run retailers IOC, BPCL, and HPCL have kept petrol at ₹94.77 a litre and diesel at ₹87.67 in Delhi since March 15, 2024.
The government has also directed all refiners to divert 50% of exported petrol and 30% of exported diesel to the domestic market.
The petroleum ministry's statement put under-recoveries at approximately ₹26 per litre on petrol and ₹81.90 per litre on diesel at current product prices.
