India slashes fuel excise duty to tame inflation
Business
The government just dropped gasoline and diesel excise duty by ₹10 per liter, hoping to soften the blow from rising global oil prices caused by the West Asia conflict.
Oil Minister Hardeep Singh Puri said the government would absorb the international price shock; officials say the measure is expected to cost over ₹1.5 lakh crore annually, but it's meant to give some relief at the pump.
New export duties coming in
To balance things out, new export duties are coming in: ₹21.5 per liter for diesel and ₹29.5 for aviation turbine fuel (ATF).
Finance Minister Nirmala Sitharaman says the duties will ensure adequate availability of these products for domestic consumption.
Analysts call the excise cut a timely stabilizing measure that aims to contain inflation.