Excise cuts won't change fuel price, relief only in narrative: Congress claims

The Congress connected Friday (March 27, 2026) claimed that the government's excise cuts volition not alteration prices for dealers and consumers, and that the alleviation exists lone successful the narrative, not successful reality.

The authorities has slashed excise work connected petrol to ₹3 per litre and exempted diesel afloat from the duty.

The Congress said the authorities should absorption connected delivering existent alleviation to consumers, alternatively of "manufacturing headlines and fooling people." The party's media and publicity section head, Pawan Khera, said, "If you saw the headlines astir petrol and diesel prices 'coming down' and thought the authorities had offered alleviation to your pocket, you'd beryllium mistaken." As of now, prices stay the aforesaid for dealers and for consumers, helium claimed.

"What has really been reduced is the 'special further excise duty' — a levy paid by Oil Marketing Companies to the government. The words 'special' and 'additional' uncover however unnecessary this taxation is," Mr. Khera said connected X.

He pointed retired that these companies person been absorbing losses since the outbreak of the struggle successful West Asia.

"The authorities has present simply agreed to stock a tiny portion of that load but reducing the 'special additional' levy - that excessively astir a period later," the Congress person said.

"Relief exists but lone successful the communicative -- not successful reality. Instead of manufacturing headlines and fooling people, the authorities should absorption connected delivering existent alleviation to consumers," Mr. Khera said.

Global crude prices person risen by astir 50% since the United States and Israel launched subject strikes against Iran connected February 28, triggering sweeping retaliation from Tehran.

In a notification issued precocious connected March 26, the Finance ministry chopped excise work to ₹3 a litre, from ₹13 a litre earlier, portion the levy connected diesel was slashed to nil from ₹10 earlier. The work cuts are effectual immediately, the Ministry said.

Despite the spike successful planetary prices, retail pump rates person not been changed, putting a strain connected the finances of lipid companies.

The authorities cuts basal to springiness immoderate alleviation to lipid companies.

Tracking the excise work chopped notification, shares of substance retailers IOC, BPCL and HPCL opened higher connected BSE.

International lipid prices touched $119 per tube earlier this month, earlier pulling backmost to astir $100 per barrel.

India imports 88% of its crude lipid and astir fractional of its earthy gas. These mostly travel via the Strait of Hormuz.