Petrol-diesel news: The government has cut down the extra excise duty on petrol and diesel, providing relief to people when fuel prices have become a big concern.

This step comes because of fluctuations in global oil prices due to unending tensions in West Asia.

Watch petrol pump manager Dinesh Kumar share his take on the issue.

Petrol Diesel Excise Duty Reduction

Petrol excise cut: As per government order issued on Thursday, the excise duty on petrol is reduced to Rs 3 per litre from Rs 13 per litre. This signifies a reduction of Rs 10 per litre.

Similarly, the excise duty on diesel is also lessened from Rs 10 per litre to zero, which also marks reduction of Rs 10 per litre.

This decision comes when global crude oil prices remain volatile after sharp rise of conflicts in West Asia. But they have begin to slight dip.

Fuel Price Cut

As per the latest excise duty update, Brent crude was trading around $106.63 per barrel, which got down to 1.28%. Whereas, WTI crude was at $93.50 per barrel, which later lowered by 1.04%.

Both reflected a minor decline.

Trump’s Iran Comments Bring Relief to Oil Markets

One major reason behind slight drop in oil prices is said to be US President Donald Trump’s current statement.

He has stated about ongoing talks with Iran and also suggested there could be pause in attacks.

This has lessened the some tension in the global oil market, resulting cut down in crude prices.nce,

It comes as a relief for countries like India that rely heavily on import. Any increase in global prices does make a direct impact on fuel costs in the country.

As prices become stable, the government has benefited consumers through this duty cut at some point.

Now the objective is to prevent the sudden shoot up of petrol and diesel prices, providing some relief for public.

Oil Minister Hardeep Singh Puri Reveals The Reason Behind The Move

The government has given explanation on this recent move. According to Oil Minister Hardeep Singh Puri, there has been a significant rise in the global crude oil prices over the past month, from $70 per barrel ot $122 per barrel. This sharp rise has made a global impact on fuel prices.

Adding further, he also stated about government’s two options. One is to either pass the whole burden of escalating price to consumers or absorb part of it.

By lessening the central excise duty, the government is making an attempt to save people from high fuel costs.

Meanwhile, this step is also helpful for marketing firms, which are incurring losses because of price rise.

Big Oil Companies in Focus

After this announcement, major oil marketing firms, such as Hindustan Petroleum Corporation Limited, Indian Oil Corporation, and Bharat Petroleum Corporation Limited are likely to remain in focus.

In the previous session, the stocks of these companies had ended higher. Where HPCl rose to 2.5%, BPCL by 0.9%, and IOC gained by 1.4%.

However, despite this rise, these have remained under pressure in recent weeks. Currently, HPCl was hit by 52-week low, while BPCL and IOC are trading well below their 52-week highs.

The profits of these companies might get affected due to dip in excise duty, depending on the further changes in the oil prices and fuel rates in the coming days.

Markets Edge Up as Oil Prices Ease, Investors Stay Cautious

Overall, there has been slight positive change in the stock market. Falling crude oil prices and buying across multiple sectors which has supported stock prices.

Investors are keeping vigil eye on the ongoing West Asia situation, as it continues to impact oil prices, inflation, and the overall market.

Currently, the government’s stance is seen as a step to monitor fuel prices and ease consumers amind global uncertainty.

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