Petrol, diesel excise cut aimed at shielding public from global price rise: Nirmala Sitharaman

New Delhi: Union Finance Minister Nirmala Sitharaman on Friday said the Centre’s decision to slash excise duty by Rs 10 on petrol and diesel was aimed at protecting citizens from the impact of rising global crude oil prices, asserting that the government has chosen to absorb the burden rather than pass it on to consumers.

Addressing the media, Sitharaman said the move reflects Prime Minister Narendra Modi’s clear policy approach of ensuring price stability and adequate fuel supply across the country.

“The prices have been reduced to ensure that there is no burden on the people. While oil prices are rising in foreign countries, two key points were focused on in the Prime Minister’s approach: first, petrol and diesel prices should not rise in the country; second, there should be ample supply within the country to prevent any shortage,” she said.

The Finance Minister emphasised that the government is taking proactive steps to maintain stability in domestic fuel markets despite volatility in international crude prices. She noted that the excise duty cut would ensure that oil marketing companies continue to receive support, enabling them to maintain supply without passing on increased costs to consumers.

“This ensures that refineries maintain sufficient supply, and regardless of the market situation, the government absorbs the burden to prevent price increases for the public,” Sitharaman added.

She also revealed that the decision was taken after consultations at the highest level on the occasion of Ram Navami. “On Ram Navami, the Prime Minister consulted all officials, made this decision, notified the Parliament in the morning, and the announcement was made publicly,” she said.

Taking a swipe at the opposition, Sitharaman criticised their reaction to the move, calling it politically motivated. “This just shows how petty they can be. I don’t see any other way for them to display their inferiority. It is shameful to do politics in matters that are meant to provide relief to the public,” she said.

Reiterating the government’s stance, the Finance Minister said that without such support measures, consumers would have had to bear significantly higher fuel costs. “If the oil marketing companies do not receive this support, the public would have to pay a higher price for every litre of petrol or diesel. The impact of rising oil prices globally is being absorbed by the government of India so that it does not affect citizens,” she said.

The excise duty reduction is expected to bring immediate relief to oil marketing companies and help ease inflationary pressures, particularly at a time when global energy markets remain uncertain.

IANS