India’s largest private fuel retailer, Nayara Energy on Wednesday announced a petrol price cut of Rs 5 per litre and a diesel price reduction of Rs 3 per litre, offering welcome relief to consumers as international crude oil prices continue to soften following the easing of geopolitical tensions in West Asia.
However, actual retail prices will vary across states depending on local taxes, including Value Added Tax (VAT).
The revised fuel prices have come into effect at all 7,000-plus Nayara Energy fuel stations across India.
Nayara Energy Reduces Petrol and Diesel Prices
The revised rates have come into effect across Nayara Energy’s nationwide retail network.
This marks the first retail fuel price reduction after global crude oil prices declined due to improving supply conditions and easing tensions in West Asia.
The price cut follows a decline in international crude oil prices after hostilities in West Asia eased and the reopening of key shipping routes restored the flow of crude oil and liquefied natural gas (LNG), reducing concerns over global supply disruptions.
Why Have Fuel Prices Been Reduced?
The fuel price cut comes at the beginning of the month alongside several other petroleum-related revisions.
State-run Oil Marketing Companies (OMCs) also reduced the price of 19-kg commercial LPG cylinders by up to Rs 183.50 across major cities, while the price of the 14.2-kg domestic LPG cylinder remains unchanged.
Lower international crude oil prices have enabled fuel retailers to pass on part of the benefit to consumers, although prices continue to vary across states because of VAT.
Government Revises Windfall Tax on Petroleum Exports
The Centre has also revised the windfall tax on petroleum exports.
The revised rates, effective from July 1, increase the Special Additional Excise Duty (SAED) on petrol exports to Rs 4 per litre from Rs 1.5 earlier.
Meanwhile, the export duty on diesel has been reduced to Rs 8.5 per litre from Rs 14 per litre, while the levy on aviation turbine fuel (ATF) exports has been cut to Rs 7.5 per litre from Rs 12.5 per litre.
The Finance Ministry clarified that there is no change in the excise duty on petrol and diesel meant for domestic consumption.
Read More:
Petrol and Diesel Prices in India Hiked for Third Time in 10 Days Amid Global Oil Pressure
Global oil shock: Petrol and diesel prices up by Rs 3 per litre, CNG gets costlier by Rs 2
