Government Faces Significant Revenue Loss Due to Cut in Excise Duty on Petrol and Diesel

28-Mar-2026 12:46 PM

New Delhi. The central government’s decision to reduce the excise duty on petrol and diesel by ₹10 per litre is expected to result in a substantial revenue loss of around ₹70 billion every fortnight. After this reduction, the excise duty on petrol has come down to just ₹3 per litre, while it has been completely removed on diesel.

With this move, petroleum companies will not need to increase the retail prices of petrol and diesel immediately. However, despite the duty cut, oil companies may still face some losses as global crude oil prices continue to rise and the Indian rupee is weakening against the US dollar, making imports more expensive.

Due to the Iran crisis, the pace of crude oil imports has slowed down. The government claims that the country currently has sufficient petroleum reserves to meet around 60 days of demand. Imports from Russia and several other countries are continuing, ensuring that the domestic supply situation remains comfortable.