The Fuel Excise Duty Cut:
The Indian government has reduced excise duty on petrol and diesel by ₹10 per litre to shield consumers and Oil Marketing Companies (OMCs) from rising global crude prices.An excise duty is an indirect tax levied by the Central Government on the manufacture or sale of specific goods within the country.In this recent move, the government slashed the duty to ease the financial burden on OMCs, bringing the excise on petrol down to approximately ₹3 per litre and effectively reducing the diesel excise to zero.This is the raw material price. Since India imports approximately 85% of its oil, this cost is highly sensitive to global benchmarks (like Brent Crude) and the USD-INR exchange rate.A weaker Rupee automatically makes fuel more expensive, even if global oil prices remain flat.
