Petrol-Diesel Excise Duty Cut: Who Benefits, Impact on Common People and Government Revenue?

• Central government cuts excise duty on petrol by ₹10 per liter, diesel effectively exempted, to provide relief amid rising crude oil prices.
• The move aims to protect common consumers from price hikes and help oil marketing companies (OMCs) operate closer to break-even.
• Fuel tax is a significant source of government revenue, with the petroleum sector generating over ₹7.5 lakh crore in tax revenue in 2023-24.
• A ₹10 per liter excise duty cut could lead to an estimated revenue loss of approximately ₹1.5 lakh crore for the government.
• High crude oil prices, exacerbated by global tensions, continue to impact the market despite the tax cut.