India's Fuel Reserves Secure Amid Global Oil Concerns

Government Slashes Excise Duties on Petrol, Diesel​

Fuel Price Relief: Excise Duty Cut Announced​

New Delhi – The government announced a reduction in excise duties on petrol and diesel on Friday, aiming to alleviate the impact of rising global oil prices. The excise duty on petrol has been lowered by ₹10 per litre, bringing the price down to ₹3 per litre. Diesel excise duty has been reduced to zero.

Duty Exemptions​

The government has also implemented exemptions on duties for fuel exports and supplies to foreign-going aircraft. Separately, a 2022 notification has been revoked, granting customs duty relief on imported aviation turbine fuel (ATF).

Financial Impact and Global Market Trends​

Oil marketing companies (OMCs) are currently estimated to be incurring losses of around ₹48.8 per litre on fuel sales, primarily due to elevated global crude prices. Global oil prices have seen a decline, with Brent crude futures falling 2.29 per cent to $105.53 per barrel and US WTI futures dropping 2.54 per cent to $92.08.

Supply Assurance​

The government emphasized India’s secure petroleum and LPG supply situation on Thursday. As of Friday, India maintains 74 days of total reserve capacity, with an actual stock cover of approximately 60 days, including crude, product, and strategic storage. The ministry highlighted that India is on the 27th day of the Middle East crisis and that all retail fuel outlets have sufficient supplies. The ministry stated that India is secured for the next many months, and strategic cavern storage quantity is secondary in this supply situation.