India slashes petrol and diesel taxes to shield consumers from price hikes and ensure domestic supply as Middle East conflict disrupts global energy markets.
NEW DELHI: India has reduced central taxes on petrol and diesel to protect consumers from rising prices and potential shortages linked to the Middle East conflict.
Finance Minister Nirmala Sitharaman announced the excise duty cuts of 10 rupees per litre on Friday.
She cited the ongoing “West Asia crisis” as the reason for the intervention, which aims to ensure adequate domestic availability.
The government also imposed new charges on exports of diesel and aviation turbine fuel.
Sitharaman said levies of 21.5 rupees and 29.5 rupees per litre respectively will help prioritise supply for the home market.
India imports over 85% of its crude oil needs, making it highly vulnerable to global supply shocks.
Russia is its largest supplier, but the broader market disruption has sent global oil prices surging.
This follows Iran’s partial closure of the crucial Strait of Hormuz energy trade route last month.
Oil Minister Hardeep Singh Puri stated India is “closely monitoring developments across energy supply chains, and essential commodities”.
The government insists it has sufficient reserves, with nearly two months of steady supply available.
Despite official assurances, panicking citizens have formed long queues at filling stations nationwide.
Many households are also rushing to buy electric stove tops, causing shortages in stores and online.
The oil ministry has urged citizens not to be misled by a “deliberately mischievous, coordinated campaign of misinformation”.
