India lowers petrol, diesel taxes to address supply concerns

INDIA has reduced taxes on diesel and petrol, the government said on Friday, as the West Asia war continues to affect global energy supplies.

India's finance minister Nirmala Sitharaman said, "In view of the West Asia crisis, the central excise duty on petrol and diesel for domestic consumption has been reduced", referring to the conflict that began late last month.

India, one of the world’s largest crude oil importers, depends on foreign suppliers for more than 85 per cent of its oil needs, with Russia as the biggest supplier.

Sitharaman said taxes on petrol and diesel have been cut by 10 rupees ($0.11) a litre to "provide protection to consumers from rise in prices".

She also announced export charges on diesel and aviation turbine fuel at 21.5 rupees ($0.23) and 29.5 rupees ($0.31) per litre.

"This will ensure adequate availability of these products for domestic consumption," she added.

Oil prices have risen since the start of the conflict, raising concerns over supply after Iran partially closed the Strait of Hormuz.

Oil Minister Hardeep Singh Puri said on Friday that India was "closely monitoring developments across energy supply chains and essential commodities".

India has also said it has enough supplies.

The oil ministry said it has "nearly two months of steady supply available for every Indian citizen, regardless of what happens globally".

Despite these statements, people have formed queues at fuel stations.

Some households have also bought electric stove tops, leading to shortages in stores and on online platforms.

The oil ministry has asked citizens "not to be misled by a deliberately mischievous, coordinated campaign of misinformation that is being carried out to spread unjustified panic."