Excise duty cut on fuel a 'narrative' with no relief: Pawan Khera

Congress leader Pawan Khera criticised the Centre's decision to slash excise duty on petrol and diesel, claiming that the move offers no real relief to consumers and is merely an exercise in narrative-building.

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Khera Calls Move a 'Narrative-Building' Exercise

In a post on X, Pawan Khera said: "If you saw the headlines about petrol and diesel prices 'coming down' and thought the government had offered relief to your pocket, you'd be mistaken. As of now, prices remain the same for dealers and for consumers."

He added, "What has actually been reduced is the 'special additional excise duty' - a levy paid by Oil Marketing Companies to the government. The words 'special' and 'additional' reveal how unnecessary this tax is."

Pawan Khera further said OMCs have been absorbing losses due to the West Asia conflict, the government's excise cut offers only narrative relief, and urged focus on real consumer relief. Khera stated, "The Oil Marketing Companies have been absorbing losses since the outbreak of the conflict in West Asia. The government has now merely agreed to share a small part of that burden, but reducing the 'special additional' levy - that too almost a month later. Relief exists but only in the narrative - not in reality."

He concluded, saying, "Instead of manufacturing headlines and fooling people, the government should focus on delivering actual relief to consumers."

Government's Excise Duty Revision

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.

Impact of West Asia Conflict and Market Reality

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 o 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.

While the duty cut is expected to ease pressure on oil marketing companies facin losses due to surging crude prices, retail prices of petrol and diesel have remained unchanged so far.

Ministry Assures Stable Fuel Supply

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 cruc inventories, and domestic LPG production has been ramped up to meet demand. (ANI)