Excise Duty Cut on Fuel: Why Pump Prices May Not Drop Despite Govt Move

• Government slashes excise duty on petrol by Rs 3/litre and exempts diesel from duty, effective immediately.
• Despite duty cuts, pump prices may not decrease as oil marketing companies could raise prices to offset losses from rising global crude.
• Oil Minister Hardeep Singh Puri stated the government took a significant revenue hit to reduce OMCs' high losses (Rs 24/litre for petrol, Rs 30/litre for diesel).
• Global crude prices surged by nearly 50% after US-Israel strikes on Iran, impacting OMCs' finances as retail rates remained frozen.
• Nayara Energy raised petrol prices by Rs 5/litre and diesel by Rs 3/litre, while state-owned retailers and Jio-bp have kept rates unchanged.