Government cuts excise duty by Rs 10 on petrol and diesel amid West Asia war

The excise duty on petrol has been cut to Rs 3 per litre from Rs 13 per litre earlier. This marks a reduction of Rs 10 per litre. Excise duty on diesel has been brought down to Rs 0 per litre from Rs 10 per litre earlier, also a cut of Rs 10 per litre.

In Short

• Govt cuts excise duty on petrol from Rs 13 to Rs 3 per litre
• Diesel excise duty reduced from Rs 10 to zero per litre
• Duty cut aims to ease fuel costs amid market uncertainties

The government has reduced the additional excise duty on petrol and diesel, offering relief at a time when fuel prices have been a concern due to the ongoing conflict in West Asia.

As per a government order dated Thursday, the excise duty on petrol has been cut to Rs 3 per litre from Rs 13 per litre earlier. This marks a reduction of Rs 10 per litre.

Similarly, the excise duty on diesel has been brought down to Rs 0 per litre from Rs 10 per litre earlier, also a cut of Rs 10 per litre.

RELIEF COMES AS CRUDE PRICES EASE

The move comes at a time when global crude oil prices have started to ease after a period of sharp rise linked to the conflict in West Asia.

As of 8:40 am, Brent crude was trading at $106.63 per barrel, down 1.28%, while WTI crude was at $93.50 per barrel, lower by 1.04%.

Recent comments from US President Donald Trump, indicating that talks with Iran were going “very well” and that there would be a pause in attacks, have helped calm some concerns in the oil market.

As a result, crude prices have seen some cooling, reducing immediate pressure on fuel costs for countries like India that depend heavily on imports.

The duty cut appears to be aimed at passing on some of this relief to consumers and managing the risk of a rise in fuel prices.

OIL MARKETING COMPANIES IN FOCUS

Shares of oil marketing companies are likely to remain in focus following this announcement.

Stocks of Hindustan Petroleum Corporation Ltd., Bharat Petroleum Corporation Ltd., and Indian Oil Corporation Ltd. had ended higher in the previous trading session.

HPCL shares rose about 2.5%, BPCL gained around 0.9%, and IOC was up by 1.4%.

Despite the recent gains, these stocks have seen pressure in recent weeks. HPCL had touched its 52-week low earlier this week, while BPCL and IOC are also trading well below their 52-week highs.

The duty cut could have an impact on their margins and overall business outlook, depending on how fuel prices and crude costs move in the coming days.

The broader market mood has also shown some improvement. Along with easing crude prices, there has been buying across sectors, which has supported stock prices.

Investors are closely tracking developments in the West Asia conflict, as it continues to influence oil prices, inflation outlook, and overall market direction.

For now, the reduction in excise duty is seen as a step to manage fuel costs and support consumers, while global factors remain uncertain.

- Ends