Consumers filling up at Nayara Energy fuel stations will pay less for petrol and diesel from July 1 after the private fuel retailer announced a nationwide reduction in pump prices. The company has cut petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre across its retail network.
The move comes as international crude oil prices have softened following the easing of tensions in West Asia. It is the first retail fuel price reduction since global crude prices began declining after concerns over supply disruptions eased.
The revised rates are effective immediately at more than 7,000 Nayara Energy fuel stations across the country. The final retail price, however, will continue to vary from state to state because of differences in value-added tax (VAT) and other local levies.
Why crude oil prices have eased
Global oil prices have declined after hostilities in West Asia subsided and key shipping routes reopened. The restoration of crude oil and liquefied natural gas supplies has eased fears of disruptions in the international energy market.
The fuel price reduction coincides with several petroleum-related changes announced at the start of July.
LPG prices and export duties also revised
State-run oil marketing companies have reduced the price of 19-kg commercial LPG cylinders by up to Rs 183.5 in major cities. There is no change in the price of the 14.2-kg domestic LPG cylinder.
The Centre has also revised the windfall tax on petroleum product exports with effect from July 1.
According to a Finance Ministry notification, the Special Additional Excise Duty (SAED) on petrol exports has been increased to Rs 4 per litre from Rs 1.5 per litre.
The export duty on diesel has been lowered from Rs 14 per litre to Rs 8.5 per litre. The levy on aviation turbine fuel (ATF) exports has also been reduced from Rs 12.5 per litre to Rs 7.5 per litre.
The ministry said there is no change in the existing excise duty on petrol and diesel sold for domestic consumption.