According to Puri, the decision was taken by Prime Minister Narendra Modi as part of a deliberate effort to absorb the financial burden rather than pass it on to Indian consumers. “The Modi Government had two choices—either increase prices drastically for citizens of Bharat, as other nations have done, or bear the brunt on its finances to insulate Indian citizens from international volatility,” Puri said in a post on X.
He emphasized that this approach aligns with the government’s commitment over the past four years, including during the Russia-Ukraine conflict, to safeguard citizens from global crises. Puri also acknowledged Finance Minister Nirmala Sitharaman for taking a significant hit on taxation revenues to offset losses faced by oil companies, which he estimated at approximately ₹24 per litre for petrol and ₹30 per litre for diesel.
To balance domestic supply and international price fluctuations, the government has simultaneously imposed export duties of ₹21.5 per litre on diesel and ₹29.5 per litre on aviation turbine fuel (ATF). “This will ensure adequate availability of these products for domestic consumption,” Sitharaman explained, adding that Parliament has been notified of the measures.
The minister also addressed circulating rumors about a potential lockdown, calling them “completely false.” He urged citizens to remain calm and responsible, warning that spreading such rumors is “irresponsible and harmful.”
Sitharaman hailed the excise duty cuts as a timely and visionary step to protect consumers amid the ongoing tensions in West Asia. “Honorable Prime Minister Narendra Modi has always ensured that citizens are shielded from the vagaries of supply and rising costs of essential goods,” she said.
The move comes as global oil markets face uncertainty due to the ongoing US-Israel-Iran conflict and disruptions in the Strait of Hormuz, which have pushed international energy prices higher. By reducing excise duties and regulating exports, the government aims to stabilize domestic fuel prices while managing its fiscal impact.
