ITANAGAR, 15 May: The Arunachal Chamber of Commerce and Industries (ACC&I), an affiliated member of the Confederation of Indian Industry (CII), on Friday supported the proposal of CII to the central government for a phased 6-9 month rollback of the Rs 10-per-litre excise duty cuts on petrol and diesel to ease the government’s fiscal burden as private investment revives.

The CII proposed that the Rs 10 excise duty reduction implemented earlier should be withdrawn gradually rather than abruptly, allowing the economy sufficient time to adjust.

Despite elevated fuel prices, the CII noted that private capital expenditure increased by 67% to Rs 7.7 lakh crore by September 2025, indicating a strong revival in investment activity that requires stable and predictable policy support.

The CII has urged member companies to voluntarily reduce fuel and power consumption by 3-5% over the next two quarters through improved logistics management and greater adoption of renewable energy.

The industry body has proposed that larger corporations provide a 45-day MSME payment guarantee to help smaller suppliers manage working capital pressures arising from higher fuel costs.

Calling for voluntary price restraint, the CII encouraged the companies to absorb part of the rising input costs within their margins in order to minimise the immediate impact on end consumers.

The proposals of the CII aim to stabilise government finances without severely affecting consumer sentiment amid ongoing inflationary pressures.