Devendra Fadnavis thanks PM Modi, says excise duty cut will benefit consumers

Maharashtra Chief Minister Devendra Fadnavis on Friday said the petrol excise duty cut announced by the Central government will shield consumers from the impact of rising global crude prices amid the ongoing war in West AsiaWelcoming the governments announcement to slash excise duty on petrol to Rs 3 a litre and exempt diesel from the duty Fadnavis thanked the Union government and Prime Minister Narendra Modi for giving this big benefit to consumersThe burden due to the situation in West Asia wont be passed on to consumers he saidFadnavis appealed people not to queue up at petrol pumps We have enough fuel he said There is also no need for hoarding of domestic gas he addedThe Centre has declared that there wont be any lockdown Fadnavis said Those spreading rumours of a nationwide lockdown will face criminal action he addedGovt cuts excise duty on petrol dieselThe government has slashed excise duty on petrol and diesel by Rs 10 per litre each a move aimed at shielding domestic consumers from a surge in global oil prices triggered by the Middle East conflict at an estimated revenue cost of Rs 175 lakh croreAlongside the government brought back duties on export of diesel and aviation turbine fuel ATFSpecial additional excise duty on petrol has been cut from Rs 13 a litre to Rs 3 and the same on diesel from Rs 10 per litre to nil according to a notification issued late on ThursdayAlongside the government imposed an export duty of Rs 215 per litre on diesel and Rs 295 per litre on aviation turbine fuel ATF reinstating a levy first introduced in July 2022 to curb windfall gains by refiners following Russias invasion of Ukraine and later withdrawn in December 2024However unlike last time there is no windfall tax that has been levied on domestic crude oil producers like ONGCAfter the reduction in excise duty the incidence of excise duty on petrol will be Rs 119 per litre Rs 140 basic excise duty Rs 3 special additional excise duty Rs 250 agriculture infrastructure and development cess and Rs 5 road and infrastructure cessOn diesel the incidence will be Rs 780 per litre Rs 180 basis excise duty Rs 4 agriculture infrastructure and development cess and Rs 2 road and infrastructure cessConsidering 175 billion litre of auto fuel sales annually 115 billion litres of diesel and 60 billion litres of petrol the impact of the duty cut would be Rs 175 lakh crore annuallyThe excise duty cut follows record losses that oil companies suffered from the surge in international oil prices Prices of crude oil the raw material for making petrol and diesel have surged almost 50 per cent this month as the US and Israel attack on Iran and Tehrans sweeping retaliation disrupts global supplyWith inputs from Agencies