Government cuts excise duty to shield OMCs from oil price shock
after close1 source ↓written by the desknot a recommendation
- relief amid rising
- ₹10/litre
- due
- $115/bbl
- on diesel
- ₹14/litre
The Indian government has cut excise duties on fuel, providing a ₹10/litre relief amid rising Brent crude prices nearing $115/bbl due to the Iran conflict. This strategic move prevents losses of ₹11/litre on petrol and ₹14/litre on diesel for OMCs, allowing them to maintain margins without raising retail prices. Analysts predict this will protect the dividend-paying capacity of IOCL, BPCL, and HPCL.
Not investment advice. For informational purposes only.