India's state-owned oil marketing companies (OMCs) are expected to see improved profitability due to lower crude oil prices, boosting fuel marketing margins, despite concerns over rising debt and uncertain fuel tax policies, according to a JP Morgan report.
India's Oil Minister Hardeep Singh Puri suggested petrol and diesel prices may decrease as cheaper crude oil arrives. He defended current prices, noting limited increases despite global volatility and government excise duty cuts, while OMCs face daily losses.
India has increased the windfall tax on diesel and aviation turbine fuel (ATF) exports for the fortnight starting June 16. The special additional excise duty on diesel is now Rs 14 per litre, and on ATF is Rs 12.5 per litre. The duty on petrol exports remains Rs 1.5 per litre.
India has abolished central excise duty on petrol blended with higher levels of ethanol (22-30%). This move aims to encourage greener transportation and potentially lower fuel prices for consumers.
India has waived excise duty on E22, E25, E27, and E30 ethanol-petrol blends to promote ethanol usage. This move supports the government's plan to establish 500 ethanol fuel stations by 2026, amid rising fuel prices due to the Middle East crisis.
Italian Economy Minister Giancarlo Giorgetti announced a ministerial decree will be used to extend energy excise duty discounts beyond their June 6 expiry, avoiding a full cabinet vote. He also stated that any available fiscal space from EU allowances will be carefully evaluated to support families and businesses.
India's Finance Minister Nirmala Sitharaman stated that reducing excise duties on petrol and diesel would result in a revenue loss of approximately Rs 1 lakh crore. She urged against 'fearmongering' amid rising fuel prices and global uncertainties, emphasizing the nation's economic resilience.
Karnataka becomes India's first state to implement an Alcohol-in-Beverage (AIB) based excise duty structure, deregulating government-administered price fixation and allowing producers to set prices based on market factors and alcohol content.
Soaring crude oil prices, averaging $105.4 a barrel, are straining oil companies' finances as they sell fuel below cost. Despite government excise duty cuts, losses are unsustainable. Experts suggest gradual price hikes and innovative strategies to manage the transition to renewables while supporting companies' investments and the macroeconomy.
Soaring crude oil prices, averaging $105.4 a barrel, are straining oil companies' finances as they sell fuel below cost. Despite government excise duty cuts, losses are unsustainable. Experts suggest gradual price hikes and innovative strategies to manage the transition to renewables while supporting companies' investments and the macroeconomy.
India has successfully navigated the Middle East crisis, ensuring stable fuel supplies and uninterrupted maritime operations. Despite global price surges, consumers are shielded through excise duty cuts and increased domestic production. State-run oil companies are absorbing significant daily losses to maintain current prices, while Indian seafarers in the Gulf remain safe and maritime operations at Indian ports are normal.
In a statement, the Finance Ministry also announced that the road and infrastructure cess on diesel exports will be waived for the next fortnight starting May 1. Meanwhile, the export duty on petrol will continue to remain at zero.
