The Indian government reduced excise duties on petrol and diesel, bringing petrol’s levy down to ₹3 per litre from ₹13 and diesel’s to zero from ₹10. This provides crucial relief to oil marketing companies amid high global crude prices from the US-Iran conflict.
Financial Boost for OMCs
Oil firms like IOC, BPCL, and HPCL gain margin support as losses exceeded ₹10 per litre on diesel due to supply disruptions. Retail prices remain unchanged, allowing companies to rebuild financial stability.
Strategic Crisis Response
The cuts address Strait of Hormuz blockades threatening global supply, with aviation fuel duties capped separately. This balances fiscal support for energy firms while shielding consumers from volatility.
