In a surprising turn of events, the Indian government has enacted a significant cut in excise duty on petrol and diesel, a move that comes as global crude prices surge. Previously, the excise duty on petrol stood at Rs 13 per litre, but as of March 27, 2026, it has been slashed to Rs 3 per litre. Diesel, which had an excise duty of Rs 10 per litre, now faces a complete removal of this tax, bringing it down to zero.

This decisive action is expected to have far-reaching implications. The government anticipates a staggering revenue loss of INR 1.75 lakh crore annually due to this excise duty reduction. Oil marketing companies, which determine retail fuel prices based on global crude prices, exchange rates, and their margins, have been grappling with significant losses, estimated at around Rs 24 per litre on petrol and Rs 30 per litre on diesel.

Despite the excise duty cut, retail pump prices have remained unchanged. This raises questions about how quickly oil marketing companies will pass on the benefits of the duty cut to consumers. Finance Minister Nirmala Sitharaman stated, “The reduction in excise duty will provide protection to consumers from rise in prices,” highlighting the government’s intent to shield consumers from the impact of escalating fuel costs.

However, the backdrop of this decision is critical. International crude prices have surged dramatically from around $70 per barrel to nearly $122 per barrel, creating a challenging environment for both consumers and oil companies. The government faced a choice between passing on the full impact to consumers or absorbing part of the shock, as noted by Oil Minister Hardeep Singh Puri.

Experts suggest that while the cut may not lead to cheaper fuel, it could prevent prices from rising further amid global uncertainty. The benefit of the duty cut appears to be aimed at stabilizing prices rather than reducing them outright. As one expert pointed out, “The cut may not make fuel cheaper, but it could stop prices from rising further at a time of global uncertainty.” This perspective underscores the delicate balance the government is trying to maintain in a volatile market.

Moreover, the government has also imposed export duties of INR 21.5 per litre on diesel and INR 29.5 per litre on aviation turbine fuel (ATF), further complicating the landscape for oil companies. The long-term impact of the excise duty cut on retail fuel prices remains uncertain, and details remain unconfirmed regarding how this will play out in the coming months.

As the situation evolves, consumers and industry stakeholders alike are left to navigate the implications of this significant policy shift. The government’s decision reflects a broader strategy to manage public sentiment and economic stability ahead of state elections, amidst rising fuel costs and potential public concern.

The post Petrol Diesel Price Excise Duty Cut: A Critical Shift appeared first on berightnews.

The petrol shortage in Hyderabad has triggered widespread panic buying, resulting in long queues at petrol stations across the city. Despite the Telangana government’s assurances that there is no fuel shortage, many petrol pumps have run out of fuel, displaying ‘no stock’ signs.

Panic buying was ignited by rumors circulating on social media about a fuel shortage, leading residents to rush to petrol stations. Reports indicate that some stations have begun rationing fuel sales, limiting purchases to between 150 and 200 litres for two-wheelers.

The daily consumption of petrol in Telangana is approximately 35 lakh litres, while the state has around 3,600 petrol pumps. However, oil companies did not supply fuel over the weekend due to holidays, exacerbating the situation.

According to the Civil Supplies Department, the fuel supply mechanism is functioning normally, and they urge the public not to engage in panic buying. “I urge the public not to engage in panic buying,” stated Stephan Reveendra, IPS, Commissioner of the Civil Supplies Department.

Despite these reassurances, many residents are feeling the impact. A local resident, A Narendra, mentioned, “I came here after seeing posts about a fuel shortage on social media.” Another motorist, Sai Kumar, expressed frustration, saying, “Hundreds of vehicles are here for filling. I am here from almost 25 minutes.”

Temporary stock issues have been reported in areas like Bahadurpura and Mir Alam, where several petrol stations are struggling to meet demand. On a typical day, each pump sells between 10,000 and 12,000 litres of petrol, but on panic buying days, this number can surge to 13,000 litres by 6 PM.

Marri Amarender Reddy, president of the Telangana Petroleum Dealers Association, criticized the oil companies, stating, “When the situation is not right, the oil companies should not impose sudden rules and restrictions that directly affect the common citizens.”

Details remain unconfirmed regarding the exact reason for the sudden surge in demand, and the timeline for when normal fuel supply will resume is uncertain. The situation continues to develop as authorities monitor the fuel supply closely.

The post Petrol Shortage in Hyderabad Causes Panic Buying appeared first on berightnews.