Excise duty cuts on fuel offer no real relief to consumers, claims Congress

The Congress on Friday criticised the Centrersquos decision to cut excise duty on fuel arguing that the move does not translate into any tangible relief for consumers or fuel dealersThe government recently reduced excise duty on petrol to Rs 3 per litre and completely exempted diesel from excise duty presenting the decision as a measure to ease the burden of rising global fuel prices However the Congress contends that the reduction is largely symbolic and does not impact retail priceslsquoRelief Exists Only in Narrativersquo Says Pawan KheraSenior party leader Pawan Khera said that despite headlines suggesting a drop in fuel prices there has been no actual change in what consumers pay at petrol pumpsTaking to social media Khera remarked that people expecting relief in their daily expenses would be disappointed He asserted that fuel prices for both dealers and end consumers remain unchanged despite the governmentrsquos announcementReduction Targets Oil Companies Not ConsumersKhera clarified that the cut applies primarily to the ldquospecial additional excise dutyrdquo a levy paid by oil marketing companies rather than directly affecting consumer pricingHe argued that oil companies have been absorbing losses for weeks due to rising global crude prices triggered by geopolitical tensions in West Asia According to him the governmentrsquos decision merely shifts a small portion of that burden rather than providing direct relief to the publicThe Congress has accused the government of focusing on optics rather than substantive economic relief urging policymakers to prioritise measures that directly benefit citizensGlobal Oil Price Surge Adds PressureFuel pricing pressures have intensified due to a sharp rise in international crude oil prices which surged significantly following military developments involving the United States Israel and Iran in late FebruaryInternational crude prices had climbed close to USD 119 per barrel earlier this month before moderating to around USD 100 per barrel The volatility has placed considerable financial strain on oil marketing companies especially as retail fuel prices have remained unchangedIndia which imports nearly 88 per cent of its crude oil and a substantial portion of its natural gas remains highly sensitive to global price fluctuations A large share of these imports passes through the Strait of Hormuz making supply chains vulnerable to geopolitical disruptionsDuty Cuts Expected to Ease Pressure on Oil FirmsAccording to the Congress the primary beneficiaries of the excise duty reduction are oil marketing companies rather than consumers The move is expected to partially offset losses incurred by these firms due to elevated crude pricesFollowing the government notification issued on March 26 shares of major public sector fuel retailers saw an uptick in early trading Companies such as Indian Oil Corporation Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited recorded gains reflecting investor optimism over improved financial stabilityDespite this the Congress maintains that the government must take further steps to ensure that any tax relief is directly passed on to consumers rather than remaining limited to fiscal adjustments within the fuel supply chain