The government on Friday slashed excise duties for petrol and diesel by Rs 10 per litre each, bringing the centre-imposed taxes down to Rs 3 per litre of petrol and making it zero for diesel. However, industry sources say the reduction is unlikely to translate into lower prices at fuel stations for most consumers as the cut will larely be absorbed by oil marketing companies (OMCs) to offset heavy losses on pump sales. OMCs are currently losing Rs 48.8 per litre of petrol or diesel sold, in large part due to the surge in Brent crude prices; the global benchmark crossed US$100 per barrel red line after the US-Israel war on Iran and the Strait of Hormuz blockade. In a long X post, Petroleum Minister Hardeep Singh Puri said: “International crude prices have gone through the roof in the last month, from around US$70 per barrel to around US$122 per barrel. Consequently, petrol and diesel prices for consumers have gone up all over the world. Prices have increased by around 30 to 50 per cent in South East Asian countries, 30 per cent in North American countries, 20 per cent in Europe, and 50 per cent in African countries.”
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