Dhami hails PM Modi's 'historic' decision to slash fuel excise duty

Uttarakhand Chief Minister Pushkar Singh Dhami on Friday hailed Prime Minister Narendra Modi after the Centre slashed excise duty on petrol and diesel. Terming it as a "historic decision" in a post on X, CM Dhami highlighted that this move would provide much-needed relief to the common people, ensuring greater financial ease in the face of rising fuel costs. https://x.com/pushkardhami/status/2037397836762165508?s=20

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CM Dhami Lauds 'People-Centric Approach'

"Whenever the country has faced challenges, the esteemed Prime Minister Narendra Modi has, time and again, ensured the protection of the interests of the citizens through his resolute leadership and visionary decisions. Reducing the excise duty on petrol from Rs 13 to Rs 3 per litre and bringing it to zero on diesel is a historic decision that provides significant relief to the common people. At the same time, ensuring adequate availability in the country through export duties on diesel and ATF reflects a balanced and people-centric approach," he said.

"This decision once again proves that for the Prime Minister, national interest and public welfare are always paramount," CM Dhami said.

Details of the Excise Duty Reduction

The remarks come after the Central government reduced excise duty on petrol to Rs 3 per litre and brought it down to zero for diesel, as per a Gazette notification issued under the provisions of the Central Excise Act, 1944. Additionally, a windfall tax of Rs 21.5 per litre has been imposed on diesel exports.

Geopolitical Context and Oil Supply

The decision follows escalating tensions in West Asia, particularly the ongoing conflict involving the United States, Israel, and Iran, which has led to a blockade of the Strait of Hormuz--a crucial route that handles nearly one-fifth of the world's crude oil supply. Before the crisis, India sourced around 12-15% of its oil imports through this route.

Impact on Retail Prices and Supply Assurance

While the duty cut is expected to ease pressure on oil marketing companies facing losses due to surging crude prices, retail prices of petrol and diesel have remained unchanged so far. The government has maintained that fuel supplies across the country remain stable.

The Ministry of Petroleum and Natural Gas, in an official statement, assured that "all retail outlets are operating normally across the country" and that there are "adequate stocks of petrol and diesel available at all petrol pumps." It also urged citizens not to engage in panic buying amid circulating rumours. Officials added that refineries are functioning at high capacity with sufficient crude inventories, and domestic LPG production has been ramped up to meet demand. (ANI)