Union Petroleum Minister Hardeep Singh Puri explained the rationale behind the Indian government cutting the special excise duty on petrol and diesel amid the raging conflict in West Asia.
The Narendra Modi government had two choices: either increase fuel prices or bear the financial brunt so that Indian citizens are insulated.
International crude prices have gone up, with petrol and diesel prices increasing by 30%-50% in Southeast Asian countries, 30% in North American countries, 20% in Europe, and 50% in African countries.
The government has taken a huge hit to its tax revenues to ensure that oil companies' losses are reduced amid sky-high international prices.
Export tax has been levied as international prices of petrol and diesel have skyrocketed, and any refinery exporting to foreign nations will have to pay export tax.
Finance minister Nirmala Sitharaman also spoke out on the government's decision, saying that the central excise duty on petrol and diesel for domestic consumption has been reduced by ₹10 per litre each in view of the West Asia crisis.
