India government has taken a major step to protect citizens from rising fuel prices. The Centre reduced excise duty on petrol from ₹13 to ₹3 per litre, while diesel duty reduced to zero due to global oil price surge caused by Middle East tensions.
The decision came as crude oil prices surged globally and threatened inflation in India. Experts say this move will reduce burden on consumers but may impact government revenue by ₹1.55 trillion annually.
To balance losses, the government imposed windfall tax on fuel exports to ensure domestic supply stability. Oil companies were facing losses of ₹24-30 per litre, which also influenced the decision.
This move is also politically significant as rising fuel prices often impact public sentiment before elections.
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