Mumbai: Union Finance Minister Nirmala Sitharaman on Monday said the Centre reduced excise duty on petrol and diesel by Rs 10 per litre to shield citizens and businesses from the sharp rise in global crude oil prices, adding that the move would cost the government over Rs 1 lakh crore in revenue during 2026-27.
Addressing the SIDBI Foundation Day Programme in Mumbai, Union Finance Minister said, she said, "So to shield citizens, therefore, and businesses from the steep rise in global crude prices, central excise duty on petrol and diesel was reduced by 10 rupees per litre. The government is estimated to take a revenue impact of over one lakh crore on this one score in the year 2026-27 because of this one decision."
"So the burden for a considerable period because of that reduction in exercise duty had been taken away from the shoulders of the common people because government has foregone or taken the burden of one lakh crore rupees," She added.
READ: Fuel shock continues: Petrol, diesel prices hiked again; 4th increase in 2 weeks
Amid fuel supply constraints arising due to the Iran-US war, the Centre has trimmed its excise duty on fuel import by Rs 10 per litre.
However, fuel prices look uncontrolled as the Oil Marketing Companies have hiked fuel prices, and that includes CNG, four times in less than two weeks.
Fuel prices across the country were hiked once again on Monday, marking the fourth increase in less than four weeks and adding further pressure on household budgets and transportation costs.
In Delhi, the retail price of petrol rose by Rs 2.61 per litre, increasing from Rs 99.51 to Rs 102.12 per litre. Diesel prices in the national capital also went up by Rs 2.71 per litre, rising from Rs 92.49 to Rs 95.20 per litre.
The latest revision has pushed petrol prices above the Rs 100-mark in all four metro cities, while diesel rates continued to edge closer to the century mark in several cities.
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Despite the assurances from the government, social media is still abuzz about the possible price rise in petrol and diesel.
Experts and economists believe that consumers will see the price of fuel rising by about Rs 10.
The anticipation pulls strength as Puri expressed a deep concern about the losses incurred by Oil Marketing Companies (OMCs).
He revealed that OMCs are losing nearly Rs 1,000 crore every day, giving a support to the anticipations of the price rise.
Ends.
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