October 5, 2026: Petroleum and Natural Gas Minister Hardeep Singh Puri on Thursday said the Centre has reduced excise duty on petrol and diesel three times since November 2021, including a Rs 10 per litre cut on both fuels in March 2026.
Puri said the duty reductions resulted in a significant revenue impact for the government, but maintaining sustained energy supplies remained necessary to protect consumers from global price volatility. He said the government had so far managed to cushion consumers against the worst effects of price fluctuations.
Puri said excise duty was reduced in November 2021, May 2022 and 10 March 2026. The latest reduction involved a Rs 10 per litre cut each on petrol and diesel, adding to the revenue pressure from lower duties.
The minister said the government was concerned about the revenue write-off following the duty cuts, while stressing that stable energy supplies were needed to limit the impact of volatility in international energy prices.
Puri also highlighted the government’s efforts to increase compressed biogas production through the GOBARDHAN scheme. He said the government has, for the first time, guaranteed offtake for CBG produced under the scheme.
There are currently 217 operational CBG plants, while another 357 plants are under construction. Puri said the GOBARDHAN scheme has been designed to support a 10-fold increase in domestic CBG production.
Waste Processing Needs Push
The minister stressed the need to improve scientific waste processing and remove legacy dump sites. He said waste processing levels had stood at around 76-78 per cent until a few years ago, highlighting the need for further improvements.
Puri also emphasised the need to maximise biomass utilisation, calling it an “absolute imperative”. He said greater use of biomass would be important as the government works to expand alternative energy sources and improve waste management.
On fuel prices, Puri said Brent crude had fallen to around USD 95 a barrel and that supplies were available. He added that prices could hopefully come down as international crude prices ease. On claims of a cap on fuel sales by private players, Puri said he preferred to exercise prudence. The Petroleum Secretary clarified that there was no restriction on sales by private fuel companies.
The secretary said nobody was allowed to impose a cap on sales and added that letters had been issued on the issue in the past as well.
(Source: Business World)
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