New Delhi, Mar 27: In a bid to ease the burden on oil marketing companies like HPCL, BPCL, and IOC, the government has sharply reduced excise duties on fuels. Petrol duty drops to Rs 3 per litre from Rs 13, while diesel is fully exempted from Rs 10, effective immediately, per a March 26 Finance Ministry notification.
The move counters a 50% surge in global crude prices since February 28, triggered by U.S.-Israel strikes on Iran and Tehran’s retaliation, including blocking the Strait of Hormuz—through which India sources 88% of its crude. Retail prices in Delhi remain frozen at Rs 94.77/litre for petrol and Rs 87.67/litre for diesel, straining state firms that dominate 90% of the market.
Rating agency ICRA warns that at $100-105/bbl crude (peaking at $119 earlier), retailers face Rs 11-14/litre losses. Private players react differently: Nayara Energy (6,967 pumps) hiked prices to Rs 100.71 (petrol) and Rs 91.31 (diesel), while Jio-bp (2,185 outlets) holds steady despite losses.
