Kamal Ghorui
NEW DELHI: The government has imposed export duties on diesel and turbine fuel, a move aimed at improving availability of these products in the domestic market, according to the CBIC chairman’s statement on Friday.The decision is also expected to strengthen the country’s energy security by ensuring adequate supplies amid evolving global conditions.Revenue collections from the new duties are estimated at around Rs 1,500 crore over a fortnight.In a parallel measure, the government has reduced special excise duties on petrol and diesel to address under-recoveries faced by Oil Marketing Companies (OMCs). This step is intended to provide cushion for consumers, with officials indicating that retail prices of key fuels will remain unchanged.The government revised its fuel duty structure, reducing the special additional excise duty on petrol to Rs 3 per litre and eliminating it entirely on diesel.The move comes amid ongoing disruptions in global oil supply chains linked to the Middle East conflict, with Iran tightening its control over the Strait of Hormuz.According to a government order dated Thursday, “the additional excise duty on petrol was cut to Rs 3 per litre from Rs 13 per litre earlier. Meanwhile, the excise duty on diesel was cut to Rs 0 from Rs 10 per litre earlier.”Meanwhile, global crude oil prices eased on Friday after US signalled that negotiations with Iran were “going very well,” extending the deadline with the country by 10 days. The development weighed on sentiment, pushing major benchmarks down by around 2 per cent in early trade. Brent crude, which had earlier surged to $108 per barrel, slipped 2.08 per cent to $105.75 per barrel. West Texas Intermediate (WTI) fell 1.94 per cent to $92.67 as of 7:50 am IST. The decline follows a sharp rally in the previous session, when Brent had jumped 4.8 per cent to $101.89 per barrel amid concerns over disruptions in the Strait of Hormuz. Prices remain significantly higher than pre-conflict levels of roughly $70 per barrel, with WTI also up 4.6 per cent to $94.48 in the previous session. Domestically, Nayara Energy, India’s largest private fuel retailer, raised petrol prices by Rs 5 per litre and diesel by Rs 3 per litre on Thursday, citing rising input costs linked to the Middle East tensions. The company operates 6,967 of India’s 102,075 petrol pumps and has passed on part of the cost increase to consumers, according to PTI sources.Additionally, looking at overall issues arising from Middle East, govt set up an inter ministerial group, which’ll be lead by defence minister Rajnath Singh, according to ANI sources. Union home minister Amit Shah, union finance minister Nirmala Sitharaman, and union petroleum minister Hardeep Singh Puri will be among the members.
