The Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Chaturvedi has stated that the government's decision to reduce excise duty on petrol and diesel by ₹10 per litre will result in a revenue loss of approximately ₹7,000 crore in 15 days.
The move aims to reduce the losses of oil companies amidst the ongoing conflict in the Middle East and ensure domestic availability of diesel and aviation turbine fuel (ATF).
Finance Minister Nirmala Sitharaman stated that the excise duty cut will provide protection to consumers from rising prices, while Union Petroleum Minister Hardeep Singh Puri highlighted the significant increase in international crude prices due to the war in the Middle East.
As a result of the duty cut, the government has imposed an export duty of ₹21.5 per litre on diesel and ₹29.5 per litre on ATF to meet domestic demands, which is expected to yield ₹1,500 crore to the exchequer in a fortnight.
