Excise Duty Cut on Petrol and Diesel

27-Mar-2026 01:01 PM

New Delhi: With the objective of shielding the public from the adverse effects of the volatile situation arising from the crisis in the Middle East, the Central Government has reduced the excise duty on petrol and diesel by ₹10 per liter.

Previously, an excise duty of ₹13 per liter was applicable on petrol, and ₹10 per liter on diesel. Following this reduction, the excise duty will now drop to ₹3 per liter on petrol and to zero on diesel.

This move will assist Oil Marketing Companies (OMCs) in improving their balance sheets and will enable the prices of petrol and diesel in the domestic market to remain stable, despite the rising global market rates for crude oil.

However, notwithstanding this reduction, there will be no immediate change in the retail prices of petrol and diesel. Over the past 20–25 days, the global market price of crude oil has surged by nearly 50 percent—climbing from $70 per barrel to levels exceeding $100 per barrel.

Under these circumstances, even if the prices of petrol and diesel merely remain pegged at their previous levels, it would still constitute a significant relief for consumers. This will help keep freight charges stable and, consequently, aid in controlling inflationary pressures.