The Indian government has announced a reduction in taxes on petrol and diesel in response to rising global oil prices triggered by the ongoing Middle East crisis.
The decision, revealed on March 27, is aimed at easing the burden of increasing fuel costs on citizens. The country’s Finance Minister, Nirmala Sitharaman, explained that the move was necessary due to disruptions in energy supply linked to tensions in West Asia.
According to her, the central excise duty on petrol and diesel for domestic use has been reduced, with prices cut by 10 rupees per litre. The measure is intended to shield consumers from the impact of escalating fuel prices.
India, which relies heavily on imported crude oil for over 85 percent of its needs, continues to depend largely on Russia as its main supplier.
In addition to the tax cuts, the government introduced new levies on the export of refined petroleum products to prioritise domestic supply. Diesel exports will now attract a charge of 21.5 rupees per litre, while aviation fuel exports will be taxed at 29.5 rupees per litre.
Authorities say these steps are designed to ensure adequate availability of fuel within the country, especially as global oil markets remain unstable.
The crisis intensified after Iran partially shut down the Strait of Hormuz, a critical route for global oil shipments, raising concerns about possible supply shortages.
Meanwhile, India’s Oil Minister, Hardeep Singh Puri, reassured citizens that the country has enough reserves to meet demand, stating that there is sufficient supply for nearly two months.
Despite these assurances, reports indicate that panic buying has occurred in some areas, leading to long queues at filling stations. There has also been a surge in demand for alternative energy sources, with many households rushing to purchase electric cooking appliances.
The government has urged the public to remain calm and ignore misleading reports about fuel shortages, warning against the spread of false information intended to create unnecessary fear.
