India cuts petrol and diesel excise duty by ₹10
Fuel pricing teams at oil marketing companies must apply petrol ₹3/diesel ₹0 excise now
Change
India reduced the special additional excise duty on petrol to ₹3 per litre and abolished it on diesel, lowering total duties by ₹10 per litre for both fuels and increasing aviation turbine fuel excise to ₹50 per litre.
Why it matters
Oil marketing companies must use the ₹10 per-litre excise reduction to absorb higher crude procurement costs and avoid raising retail pump prices. Retail pump prices remain constrained by global crude around $149 per barrel and are unlikely to fall immediately despite the tax cut.
Implications
- — Pricing teams at oil marketing companies must update retail-pricing and tax-computation systems immediately to reflect petrol special additional excise at ₹3/litre and diesel at ₹0/litre — failing to update will produce incorrect tax invoicing and expose the company to tax reconciliation costs and compliance risk.
- — Treasury teams at oil marketing companies must apply the ₹10 per-litre relief immediately to offset rising crude costs or else implement retail price increases that risk triggering dealer protests and political scrutiny during the state election period.
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Source
View on Economic Times