Government cuts ₹10 per litre excise duty to address fuel price pressures

The World Trade Center Mumbai and the All India Association of Industries (AIAI) have responded to the Government of India’s decision to reduce excise duty by ₹10 per litre on petrol and diesel. The revision has been implemented with immediate effect amid global fuel price fluctuations.

In the picture: Dr. Vijay Kalantri, Chairman, World Trade Center Mumbai and President, All India Association of Industries.

The Government of India has reduced excise duty by ₹10 per litre on both petrol and diesel, effective immediately. The measure has been introduced in the context of rising global fuel prices and ongoing economic considerations.

Dr. Vijay Kalantri, Chairman, World Trade Center Mumbai and President, All India Association of Industries, commented on the development, stating, “The Government has taken a conscious decision to absorb a significant fiscal impact estimated at around ₹1.7 lakh crore annually to shield citizens from a sharp rise in fuel prices. At a time when global fuel prices have increased significantly by 30–50% across South and South-East Asia, around 30% in North America, and nearly 20% in Europe, India has maintained price stability. This decision underscores the Government’s commitment to prioritizing economic stability and consumer welfare.”

He further said, “The excise reduction will offset pressures on Oil Marketing Companies (OMCs), enabling them to continue supplying fuel without disruption while keeping retail prices stable. Fuel is a critical input across sectors, and stabilizing its cost will have a cascading positive impact on transportation, logistics, and inflation. This will provide relief to industry, MSMEs, and the common man alike.”

Dr. Kalantri also added, “the Government’s continued focus on ensuring uninterrupted availability of petroleum products, including LPG for both household and commercial usage. Such proactive and balanced policy measures will help sustain economic momentum, contain inflationary pressures, and strengthen overall resilience in a period of global uncertainty,”

The World Trade Center Mumbai and AIAI stated that the decision is expected to support multiple sectors by addressing fuel cost pressures and maintaining supply continuity.