Congress Criticizes Government's Fuel Tax Cut Ahead of Elections

Congress leader Jairam Ramesh has criticized the government's recent decision to reduce excise duties on petrol and diesel, claiming it is a politically motivated move ahead of the assembly elections. He highlighted that despite multiple drops in global crude oil prices over the past twelve years, consumer fuel prices in India have remained unchanged. The government's actions come amidst rising tensions in West Asia, impacting oil supply routes. While the tax cut aims to ease financial burdens on oil companies, retail prices have not yet been adjusted. The Ministry of Petroleum assures stable fuel supply across the nation, urging the public against panic buying.

By Narendra Chaudhary Mar 27, 2026, 15:51 IST

Political Motivations Behind Fuel Tax Reduction

On Friday, Congress leader Jairam Ramesh expressed his disapproval of the government's decision to reduce excise duty on petrol and diesel, labeling it as politically motivated ahead of the upcoming assembly elections. In a post on X, Ramesh pointed out that despite global crude oil prices dropping seven times over the past twelve years, consumer fuel prices in India have not seen a decrease. He emphasized that the recent announcement is a direct result of the impending elections, urging people to wait until April 30.

According to a gazette notification issued under the Central Excise Act of 1944, the central government has reduced the excise duty on petrol by ₹3 per liter and eliminated it on diesel. Additionally, a windfall tax of ₹21.5 per liter has been imposed on diesel exports. This government action comes amid escalating tensions in West Asia involving the United States, Israel, and Iran, which have led to the blockade of the Strait of Hormuz, a crucial route responsible for nearly one-fifth of global crude oil supply. Prior to the crisis, India sourced about 12-15% of its oil imports from this route.

The aim of the tax reduction is to alleviate financial pressure on oil marketing companies struggling due to rising crude oil prices; however, there has been no change in retail fuel prices as of yet. The Ministry of Petroleum and Natural Gas has confirmed that fuel supply remains stable across the country. An official statement reassured that all retail outlets are operating normally and that petrol and diesel stocks are sufficient at all petrol stations. The ministry also urged the public not to panic buy amidst circulating rumors.