Petrol and diesel prices to be reviewed every 15 days, government announces major decision

New Delhi (The Uttam Hindu): The government has made a significant announcement regarding petrol and diesel pricing in the country. It has been decided that fuel prices will now be reviewed every 15 days. Central Board of Indirect Taxes and Customs Chairman Vivek Chaturvedi said the move aims to reduce heavy losses faced by oil companies while also protecting consumers from rising price burdens. As part of this strategy, the government has also reduced excise duty on petrol and diesel.

No shortage of crude oil, supply fully secured

Sujata Sharma, Joint Secretary in the Petroleum Ministry, assured that there is no shortage of crude oil in the country. She stated that supply arrangements for the next two months are fully secured. LPG and PNG supplies remain normal, with over 10,000 new connections being issued daily.

She emphasized that fuel availability is sufficient across the country and urged citizens not to panic or crowd petrol pumps unnecessarily. Authorities are taking strict action against hoarding, black marketing, and misinformation. She also noted that since April 2022, petrol and diesel prices have largely remained stable or declined.

Refineries operating at full capacity amid global tensions

Referring to the ongoing crisis in West Asia, the official stated that despite disruptions in global supply of crude oil, LPG, and LNG, India has adequate reserves. All domestic refineries are operating at more than 100% capacity. Commercial supply disruptions witnessed in recent weeks have now been restored up to 70%, ensuring stability in fuel availability.

Excise duty reduced by ₹10 per litre

According to Vivek Chaturvedi, the decision comes in response to a sharp rise in global prices of crude oil, petrol, diesel, and aviation turbine fuel (ATF). The government has reduced excise duty on petrol and diesel by ₹10 per litre.

Revised excise duty on petrol has been reduced from ₹21.90 to ₹11.09 per litre, while diesel duty has been cut from ₹17.8 to ₹7.8 per litre. Additionally, based on current crack prices, duty on petrol is effectively zero, while special additional excise duty (SAED) and cess have been imposed on diesel and ATF exports.

Review every 15 days to ensure stability

The government stated that the objective of these changes is to prioritize domestic fuel availability during a challenging global situation. With conditions evolving rapidly, fuel pricing and policy measures will now be reviewed every fortnight.

Officials estimate that these adjustments could result in a revenue benefit of around ₹1,500 crore for the government every 15 days.