CII Proposes Gradual Restoration of Fuel Excise Duty Amid Stabilizing Crude Prices
CII seeks phased restoration of fuel excise as crude prices stabilise
Business Standard
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The Confederation of Indian Industry (CII) has called for a phased restoration of the ₹10-per-litre cut in fuel excise duty over six to nine months as crude oil prices stabilize. This move aims to relieve government finances without negatively impacting consumer sentiment, while also promoting private investment and energy conservation.
- 01CII recommends a phased restoration of fuel excise duty to ease government financial pressure.
- 02Private capital expenditure (capex) surged to ₹7.7 trillion in September 2025, indicating a strong investment cycle.
- 03CII proposes a voluntary energy conservation compact and a 45-day MSME payment guarantee.
- 04The organization emphasizes the need for diversified supply chains and increased domestic value addition.
- 05CII warns of near-term risks from the West Asia crisis, urging coordinated government and industry action.
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The Confederation of Indian Industry (CII) has urged the Indian government to gradually restore the ₹10-per-litre cut in special additional excise duty on petrol and diesel over a period of six to nine months, as crude oil prices stabilize. CII's director general, Chandrajit Banerjee, stated that this phased approach would relieve the financial burden on the government while maintaining consumer sentiment. This recommendation is part of a broader five-point action agenda aimed at addressing ongoing global uncertainties, including the crisis in West Asia. CII's analysis indicates a significant rise in private capital expenditure, which reached ₹7.7 trillion in September 2025, a notable increase from ₹4.6 trillion a year earlier. This trend signals a robust investment environment not seen in over a decade. The agenda also includes initiatives for energy conservation, prompt payments to micro, small, and medium enterprises (MSMEs), and strategies to enhance domestic supply chains. CII emphasizes the importance of proactive investment and efficiency measures in the face of global challenges, highlighting the need for collaboration between the government and industry to ensure economic stability.
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The gradual restoration of fuel excise duty could lead to higher fuel prices, affecting transportation and consumer goods costs. This may increase expenses for households and businesses reliant on fuel.
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