A ₹10 per litre excise duty cut on fuel sounds like big relief, but why are petrol and diesel prices unchanged? The reality is more complex. With crude oil prices surging past $100 due to the West Asia conflict, oil companies in India are facing massive losses. Instead of passing the tax benefit to consumers, the government is using this cut to ease financial pressure on these companies while keeping retail prices stable. This prevents a sudden spike in fuel costs that could trigger inflation across sectors. India’s heavy dependence on imported crude and disruptions in global supply routes make price stability a priority. While private players have started raising prices, state-run firms are holding steady. The move reflects a calculated strategy — absorb global shocks first, and pass on benefits only when markets stabilise.