News Capsule: Impact of War Emerging – Excise Duty Cut on Petrol & Diesel, Export Duty Imposed
27-Mar-2026 11:24 AM
News Capsule: Impact of War Emerging – Excise Duty Cut on Petrol & Diesel, Export Duty Imposed
★ The government has reduced excise duty on petrol and diesel by ₹10 per litre. The duty on petrol has been cut from ₹13 to ₹3 per litre, while on diesel it has been reduced from ₹10 to zero.
★ However, despite this reduction, retail fuel prices are unlikely to decline, as crude oil prices have surged above $100 per barrel. The government has chosen to absorb the fiscal burden to prevent an increase in consumer prices.
★ At the same time, the government has imposed an export duty of ₹21.50 per litre on diesel and ₹29.50 per litre on aviation turbine fuel (ATF) to ensure adequate domestic availability.
★ This move is expected to result in an annual fiscal burden of around ₹1.55 trillion on the government.