More than 85% of the country’s oil needs are met through foreign suppliers.
New Delhi: India has cut taxes on diesel and petrol, the government announced Friday, as ongoing conflict in the Middle East continues to disrupt global energy supplies.
“In view of the West Asia crisis, the central excise duty on petrol and diesel for domestic consumption has been reduced,” said Nirmala Sitharaman
As one of the world’s leading crude oil importers, the country sources more than 85% of its oil from abroad, predominantly from Russia.
Nirmala Sitharaman said taxes on petrol and diesel have been reduced by 10 rupees ($0.11) per litre to “shield consumers from rising prices.”
She also announced export levies of 21.5 rupees ($0.23) per litre on diesel and 29.5 rupees ($0.31) per litre on aviation turbine fuel.
“This will ensure sufficient availability of these products for domestic consumption,” she added.
The surge in oil prices since the outbreak of the conflict has pushed fuel costs higher and raised global concerns over potential shortages, particularly after Iran partially closed the strategic Strait of Hormuz, a key energy trade route.
Hardeep Singh Puri said Friday that India is “closely monitoring developments across energy supply chains and essential commodities.”
At the same time, the government has stressed that the country maintains adequate fuel supplies.
The oil ministry stated that it has “nearly two months of steady supply available for every Indian citizen, regardless of global developments.”
Despite these repeated assurances, panic buying has led to long queues at petrol stations.
In addition, many households have rushed to purchase electric stovetops, causing shortages both in stores and on online platforms.
The oil ministry has urged citizens “not to be misled by a deliberately mischievous, coordinated campaign of misinformation designed to create unwarranted panic.”
