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Amid rising global crude oil prices and supply disruptions linked to the West Asia crisis and Strait of Hormuz tensions, the Union government has reduced excise duty on petrol and diesel by ₹10 per litre each. The move aims to shield consumers from volatile fuel prices.
Petrol, Diesel Become Cheaper as Centre Cuts Excise Duty by ₹10
New Delhi: Amid ongoing tensions in West Asia and rising crude oil prices, the central government has taken a major decision. On Friday, the government announced a reduction of ₹10 per liter in excise duty on petrol and diesel. This move comes at a time when global oil prices are fluctuating. Supply disruptions in the Strait of Hormuz have exacerbated the situation.
Finance Minister Nirmala Sitharaman stated that the excise duty on both petrol and diesel has been reduced by ₹10 per liter. This effectively translates to ₹3 per liter on petrol and zero on diesel. She stated that the government's aim is to provide relief to consumers from rising prices.
In view of the West Asia crisis, the central excise duty on petrol and diesel for domestic consumption has been reduced by ₹10 per litre each. This will provide protection to consumers from rise in prices. Hon. PM @narendramodi has always ensured that citizens are protected from…
— Nirmala Sitharaman (@nsitharaman) March 27, 2026
However, it is being believe that the direct benefits of these reductions are not yet clear to consumers. Often, despite tax cuts, retail prices are not immediately reflected, resulting in limited relief for the public.
The government has not only provided domestic relief, but also imposed an export duty of ₹21.5 per liter on diesel exports and ₹29.5 per liter on aviation turbine fuel (ATF). The government says this will ensure supply in the domestic market and maintain fuel availability.
International crude oil prices currently hover between $93 and $98 per barrel. Prices have fluctuated sharply in the past few months, impacting the global energy market.
Nayara Energy, the country's leading private fuel company, recently increased petrol prices by ₹5 per liter and diesel by ₹3 per liter. This has added to the burden on consumers already reeling under inflation.
The Petroleum Ministry stated that India has sufficient crude oil reserves for the next 60 days. Due to increased purchases from Western countries and alternative supply sources, there is no fear of any major supply crisis. The government also said that the situation is being continuously monitored.
