New Delhi, 27 March (H.S.):

The central government has rolled back its special additional excise duty on petrol and diesel by 10 rupees per litre each, in a move aimed at cushioning consumers amid the West Asia crisis. An official notification from the Finance Ministry dated Friday states that the special additional excise duty on petrol has been cut from 13 rupees per litre to 3 rupees per litre, while the same duty on diesel has been reduced from 10 rupees per litre to zero. The revised rates have come into effect immediately and are expected to reflect in lower pump prices across the country.

The move comes at a time of heightened global energy uncertainty, with oil markets rattled by escalating tensions in West Asia and disruptions around the Strait of Hormuz.

The government signalled that the reduction is intended to ease the tax burden on households and transport‑dependent businesses, even as international crude prices remain volatile. Petrol and diesel at the retail level are still subject to standard excise duty, VAT and dealer margins, but the cut in the special additional levy should contribute to some moderation in pricing at the pump.

In a contrasting step, the government has introduced a new levy framework for aviation turbine fuel (ATF). Under the revised structure, a special additional excise duty of 50 rupees per litre has been imposed on ATF, with partial relief built‑in through specified exemptions. After these adjustments, the effective levy on ATF works out to approximately 29.5 rupees per litre.

Analysts say the differential treatment of road fuels and ATF reflects a policy attempt to keep road transport costs relatively contained while shifting a larger tax share to the aviation sector, which is seen as less price‑sensitive for mass consumers.

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Hindusthan Samachar / Jun Sarkar