India cuts gasoline and diesel excise amid Middle East conflicts
India just dropped excise duties on gasoline and diesel, hoping to ease the pain of soaring fuel prices caused by Middle East conflicts.
Petrol duty is now ₹11.90 per liter (down from ₹21.90), and diesel is ₹7.80 per liter (down from ₹17.80).
The goal? Make things a bit easier for everyone at the pump while global oil markets are in chaos.
India's windfall taxes fund excise cuts
To keep more fuel at home, India also slapped new taxes on oil exports: ₹21.5 per liter for diesel and ₹29.5 per liter for aviation turbine fuel.
These "windfall" taxes help cover some of the government's big spending on these cuts, but estimates put the cost to the government at about ₹1.7 trillion a year, and Madhavi Arora said the excise cut would help oil marketing companies absorb around 30-40% of their losses, though it would come at a cost to the exchequer.
If high crude prices stick around, though, it could put extra pressure on India's economy through higher inflation and trade deficits.