Petrol-Diesel Tax Cut: Government Faces Rs 1.75 Lakh Crore Revenue Hit

• Central government slashes excise duty on petrol and diesel, leading to a potential revenue loss of up to Rs 1.75 lakh crore.
• Excise duty on petrol reduced from Rs 13 to Rs 3 per liter, and on diesel from Rs 10 to zero.
• Move aims to mitigate heavy losses for Oil Marketing Companies (OMCs) due to high international prices, with OMCs losing Rs 24/liter on petrol and Rs 30/liter on diesel.
• Daily revenue loss estimated at Rs 450-500 crore, totaling Rs 1.6-1.8 lakh crore annually.
• Government imposes windfall tax on diesel and jet fuel exports (Rs 21.5/liter and Rs 29.5/liter respectively) to ensure domestic fuel availability and offset some revenue loss.