Iran Conflict: Excise duty cut on petrol and diesel, customs duty removed from petrochemicals; Government gave update

Iran Conflict Latest Update: Amid rising geopolitical tensions and instability in West Asia, the Indian government has imposed a ‘hole-of-government’ policy to safeguard the domestic economy and protect its citizens. (Whole of Government) approach. Today, at a joint press briefing at the National Media Centre, senior officials of the Ministries of Petroleum, External Affairs, Commerce and Finance informed about the revolutionary steps taken for the country’s energy security, trade continuity and security of the Indian diaspora.

The Ministry of Petroleum and Natural Gas clarified that there are sufficient reserves of crude oil and refined products in the country. To provide relief to the general public from the abnormal increase in global crude oil prices, the government has reduced the excise duty on petrol and diesel by a whopping ₹ 10 per liter.

Ministry’s appeal to the public

To ensure supply in the domestic market, the government has imposed export levy of ₹21.5 per liter on diesel and ₹29.5 per liter on ATF. The ministry has appealed to the public not to pay attention to rumors and avoid panic buying, as adequate stock is available at all petrol pumps.

Custom duty abolished on petrochemicals

Taking a major decision, the Ministry of Finance (CBIC) has given complete exemption from customs duty on major petrochemical products. This exemption will remain effective till June 30, 2026. The move is aimed at providing relief to sectors such as pharmaceuticals, textiles, packaging and automotive that are dependent on West Asia for raw materials. This will put a burden of about ₹1,800 crore on the government exchequer, but will help in keeping domestic manufacturing costs stable.

‘RELIEF’ for exporters Plan

Commerce Ministry has provided ‘RELIEF’ (Resilience and Logistics Intervention for Export Facilitation) initiative has been launched. Under this, MSME exporters will be provided stability in additional logistics charges and insurance premium. Additionally, a West Asia Crisis Desk and a toll-free helpline have also been launched to immediately resolve bottlenecks in logistics and shipping routes.

Security of Indian citizens and seafarers

Ministry of External Affairs informed that the safety of the Indian community in the area is the top priority. So far, 1,200 citizens (including 845 students) have been evacuated from Iran via Armenia and Azerbaijan. According to the Shipping Ministry, the safe return of 975 Indian seafarers has been ensured so far. Currently, 485 sailors on 18 Indian ships are in the Persian Gulf region, whose security is being monitored 24’7.

Reforms in PNG and LPG

The defense and road transport ministries have relaxed rules to speed up PNG infrastructure. More than 55,000 new PNG connections have been given in the last five days. At the same time, to stop black marketing of LPG, ‘Delivery Authentication Code’ (DAC) based delivery has been increased to 85%.

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The government has directed the states to Essential Commodities Act Take strict action against hoarding and share accurate information through daily press briefing. The Ministry of External Affairs is continuously monitoring the situation in West Asia and the air traffic situation is also improving.