India cuts fuel excise duty and resets tax structure
Duty cut offsets crude spike without lowering pump prices
Change
India reduced excise duty on petrol to ₹3/litre and eliminated it on diesel while imposing ₹50 excise on aviation turbine fuel and export levies on refined fuels.
Why it matters
The tax cut is used to absorb rising crude costs rather than reduce retail prices, keeping pump rates broadly stable despite global price pressure.
Implications
- — Oil companies retain pricing buffer — margins stabilised
- — Consumers unlikely to see price cuts — cost baseline holds
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