Congress says fuel duty cut applies to oil firms, not consumers at the pump

The Congress party on Friday criticised the government’s recent reduction in excise duty on petrol and diesel, arguing that the move does not provide any tangible relief to consumers and instead creates a misleading perception of price cuts.

Party spokesperson Pawan Khera said reports suggesting a fall in fuel prices were inaccurate, as retail rates for both petrol and diesel remain unchanged.

“If you saw headlines about petrol and diesel prices coming down and assumed it would ease your expenses, you would be mistaken,” he said in a post on social media platform X. “Prices remain the same for both dealers and consumers.”

Mr Khera explained that the reduction applies to the “special additional excise duty”, a levy paid by oil marketing companies (OMCs) to the government, rather than a direct cut that would lower pump prices.

He argued that OMCs have been absorbing losses since the escalation of conflict in West Asia and that the government’s decision merely shifts a small portion of that burden away from them. “Relief exists only in the narrative, not in reality,” he added, accusing the government of attempting to “manufacture headlines”.

The Centre on Thursday announced a sharp reduction in excise duty, lowering it to Rs 3 per litre on petrol and scrapping it entirely on diesel.

The move was aimed at cushioning the impact of surging global crude oil prices, which have spiked following tensions involving the United States, Israel and Iran.

In addition, the government has provided exemptions on duties for fuel exports and supplies to foreign-bound aircraft, and has also rolled back an earlier notification to grant customs duty relief on imported aviation turbine fuel.

Despite the tax cuts, retail fuel prices have largely remained stable, with oil companies expected to absorb the benefit to offset mounting losses. Industry estimates suggest that OMCs are incurring significant losses on fuel sales due to elevated crude prices.

The government has maintained that India’s fuel supply remains secure and has urged citizens not to be influenced by what it described as misinformation aimed at creating panic.

The debate comes as global oil markets remain volatile. Brent crude prices have eased slightly in recent trade but continue to hover above the USD 100 per barrel mark, sustaining concerns over inflation and energy costs.

With political sparring intensifying over fuel pricing, the impact of the duty cut on consumers is likely to remain a key issue in the days ahead.

With IANS inputs