New Delhi, March 27
The Congress party has accused the government of creating the impression of fuel price relief without reducing the actual cost for consumers, after the Centre cut excise duty on petrol and removed the levy on diesel.
The government on Thursday reduced excise duty on petrol to Rs 3 per litre from Rs 13, and cut the duty on diesel to zero from Rs 10, with the changes taking immediate effect.
But Congress said the move would not lower prices for dealers or consumers, arguing that the relief was “only in the narrative, not in reality”.
Party spokesperson and media department head Pawan Khera said the reduction applied to a “special additional excise duty” paid by oil marketing companies to the government, rather than to retail fuel prices.
“If you saw the headlines about petrol and diesel prices ‘coming down’ and thought the government had offered relief to your pocket, you’d be mistaken,” Khera said in a post on X.
“As of now, prices remain the same for dealers and for consumers.”
He said the “special additional excise duty” was a levy paid by oil marketing companies, adding that the government had only agreed to absorb a small part of the burden after the companies had been under pressure since the start of the West Asia conflict.
“The government should focus on delivering actual relief to consumers, instead of manufacturing headlines and fooling people,” Khera said.
The duty cuts were announced after global crude oil prices surged in the wake of US and Israeli strikes on Iran on 28 February, which were followed by retaliation from Tehran.
International crude prices rose sharply earlier this month, touching about $119 a barrel before easing to around $100.
India, which imports about 88% of its crude oil and roughly half of its natural gas, remains highly exposed to disruptions in West Asia, with much of its energy supplies moving through the Strait of Hormuz.
Despite the rise in global prices, retail fuel rates in India have so far remained unchanged, increasing pressure on state-run oil marketing companies.
Analysts say the excise duty reduction is likely to offer some financial relief to those companies rather than immediate benefits to motorists.
Shares of Indian fuel retailers Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum opened higher on the BSE after the notification was issued.
