Congress MP KC Venugopal Questions Benefit of Excise Duty Cut on Petrol, Diesel

Congress MP K. C. Venugopal on Friday questioned the Centre's decision to cut excise duty on petrol and diesel, saying it remains unclear how much relief ordinary citizens will actually receive from the move. His remarks came amid growing concerns over fuel availability and rising prices linked to escalating tensions in the Middle East.

Reacting to the government's announcement, Venugopal said, "I don't know what benefit the people of India are going to get from these decisions," suggesting that previous duty adjustments had not always translated into meaningful price reductions for consumers. He urged the government to ensure that any tax cuts genuinely reduce retail fuel prices rather than being absorbed within the supply chain.

The Centre's decision to reduce excise duty on petrol and diesel comes at a time when global energy markets are under pressure due to the ongoing conflict between Iran and Israel and heightened instability across the Middle East. The tensions have disrupted shipping routes and raised fears about supplies moving through the strategic Strait of Hormuz, a critical passage for global crude oil and liquefied petroleum gas (LPG) shipments.

India, which imports more than 80 per cent of its crude oil requirement, has been particularly vulnerable to fluctuations in global supply. Industry officials have warned that prolonged disruptions could tighten supplies of both petrol and LPG in the domestic market, pushing prices higher and affecting household budgets.

Against this backdrop, the government says the excise duty reduction is intended to cushion consumers from global price shocks. However, opposition leaders argue that structural measures and greater transparency in fuel pricing are needed to ensure that relief reaches the public at a time when energy security concerns are mounting.