Finance
The government reduced excise duty on fuel and gasoline by Rs 10 per litre each, bringing them down to Rs 3 for petrol and zero for diesel, in an effort to cushion the impact of rising global oil prices.
The government has also waived tariffs on fuel exports and supply to foreign-bound aircraft.
Separately, the Centre has withdrawn an earlier 2022 notification and granted customs tax exemption on imported aviation turbine fuel (ATF).
The drop comes amid fears of a price increase owing to the global energy crisis, which was precipitated by the US-Israel confrontation with Iran and the subsequent blockage of the Strait of Hormuz.
Oil marketing corporations (OMCs) are anticipated to absorb the cut to offset growing losses. OMCs are currently reported to be losing roughly Rs 48.8 per litre on fuel sales, owing to rising global crude costs.
Meanwhile, global oil prices fell, with Brent crude futures down 2.29 percent to $105.53 per barrel. US WTI futures fell 2.54% to $92.08 as of 8:50 a.m.
The government unequivocally asserted on Thursday that India’s petroleum and LPG supply situation is entirely secure and under control, warning residents not to be deceived by a “deliberately mischievous, coordinated campaign of misinformation” intended to generate needless alarm.
India has 74 days of total reserve capacity, and actual stock cover is around 60 days right now (including crude stocks, products stocks and the dedicated strategic storage in caverns), even as “we are on the 27th day of the Middle East crisis”, the Petroleum Ministry said, adding that all retail fuel outlets have enough supplies.
“There is no shortage of petrol, diesel, or LPG anywhere in the country,” it said in a statement, adding that nearly two months of steady supply is available for every Indian citizen, regardless of what happens globally.
“Next 2 months of crude procurement has also been secured. India is completely secure for the next many months, and the quantity in strategic cavern storage becomes secondary in such a supply situation. Therefore, any representation that India’s reserves are depleted or insufficient should be dismissed with the disdain it deserves,” the ministry highlighted.
Source: IANS
