India has reduced special additional excise duties on petrol and diesel as the government responds to sharp volatility in global crude markets linked to the ongoing conflict involving Iran and disruptions in the Strait of Hormuz. The move is intended to ease pressure on domestic oil marketing companies that have been selling fuel below cost due to rising international prices.
Under the revised structure, the duty on petrol has been lowered to three rupees per litre from 13 rupees, while the duty on diesel has been removed entirely after previously standing at 10 rupees per litre. Officials said the adjustments are part of a broader effort to stabilize the domestic fuel supply chain during a period of global uncertainty.
India relies heavily on imported energy, with roughly 40 percent of its oil supply passing through the Strait of Hormuz. Ongoing tensions in the Middle East have disrupted shipping routes and contributed to rising global crude prices, creating pressure on both refiners and consumers.
Petroleum and Natural Gas Minister Hardeep Singh Puri said the government chose to absorb part of the financial burden rather than passing the full cost increase to citizens. He stated that the decision reflects a policy choice to protect households from sudden price shocks during a period of international instability.
Industry analysts noted that while the duty cuts provide relief to oil companies, retail fuel prices may not fall immediately because companies are still recovering earlier losses tied to high crude import costs. Prices in major cities remained largely unchanged following the announcement.
