Overview
- The government, which announced the changes Friday, cut special excise to Rs 3 per litre on petrol and to zero on diesel, and set export duties at Rs 21.5 per litre for diesel and Rs 29.5 per litre for jet fuel to prioritise supplies at home.
- Retail pump rates are expected to stay largely unchanged because state-run oil marketers are using the tax relief to offset heavy losses on sales, with reported under-recoveries running in the Rs 24–30 per litre range and higher in some estimates.
- Officials said India has roughly 60 days of crude cover and about 74 days including all reserves, refineries are running at high capacity, and talk of any lockdown or rationing is false.
- Local reports describe long queues and panic buying at pumps in several cities, with ride-hail and daily‑wage drivers losing work hours because they must refuel more often and cannot stock up.
- The supply shock stems from Strait of Hormuz disruptions that drove Brent above $100 per barrel, and LPG remains tight even as the Centre lifts domestic output and says commercial supply has been restored to about 70 percent with several LPG ships arriving.