Government Cuts Excise Duty on Petrol and Diesel by ₹10
Synopsis
In a strategic response to rising oil prices, the Indian government has slashed excise duties on petrol and diesel by ₹10 per litre. This move aims to stabilize fuel costs and ensure supply security amidst global tensions.
Key Takeaways
Excise duties on petrol and diesel reduced by ₹10 per litre.
Petrol now has an excise duty of ₹3 per litre, diesel is duty-free.
Government assures no fuel shortage in India.
Oil marketing companies expected to absorb losses.
Global oil prices have recently declined.
New Delhi, March 27 (NationPress) In a significant move, the government announced a reduction in excise duties on petrol and diesel by Rs 10 per litre each, lowering petrol duties to Rs 3 per litre and eliminating duties on diesel altogether. This decision aims to alleviate the effects of rising global oil prices.
Additionally, the government has granted duty exemptions for fuel exports and supplies to aircraft headed overseas.
In a related development, the Centre has revoked a previous notification from 2022 and provided customs duty relief on imported aviation turbine fuel (ATF).
This reduction comes amidst concerns over potential price increases due to the ongoing global energy crisis, exacerbated by tensions between the US and Iran, leading to a blockade in the Strait of Hormuz.
Oil marketing companies (OMCs) are anticipated to absorb this duty reduction to mitigate their growing losses. Currently, OMCs are facing losses estimated at Rs 48.8 per litre on fuel sales, primarily due to high global crude prices.
Meanwhile, global oil prices have taken a downturn, with Brent crude futures decreasing by 2.29 percent to $105.53 per barrel. Similarly, US WTI futures have fallen 2.54 percent to $92.08 as of 8:50 am.
On Thursday, the government reassured citizens that India's petroleum and LPG supply is secure and under control. It urged the public not to fall for a "deliberately misleading, coordinated misinformation campaign" designed to create unwarranted panic.
India currently has 74 days of total reserve capacity, with actual stock levels covering approximately 60 days (including crude and product stocks, along with dedicated strategic reserves), even as the nation enters the 27th day of the Middle East crisis. The Petroleum Ministry emphasized that all retail fuel outlets are well-stocked.
"There is no shortage of petrol, diesel, or LPG across the country," the ministry stated, assuring that nearly two months’ worth of steady supply is available for every citizen, irrespective of global developments.
"We have secured crude procurement for the next two months. India’s supply is entirely secure for the forthcoming months, making the amount in strategic storage secondary in this context. Thus, any claims that India's reserves are inadequate should be dismissed with appropriate skepticism," the ministry asserted.
Point of View
It's crucial to note that the government's decision to cut excise duties on fuel is a significant step towards mitigating the economic pressures on citizens. While the reduction is welcomed, ongoing global uncertainties remind us of the volatility of oil markets and the need for strategic energy policies.
NationPress
11 May 2026
Frequently Asked Questions
What is the new excise duty on petrol and diesel?
The new excise duty on petrol is ₹3 per litre, while diesel has been exempted from excise duties.
Why did the government reduce excise duties?
The reduction aims to cushion the impact of rising global oil prices and alleviate financial pressure on consumers.
How will this affect oil marketing companies?
Oil marketing companies are expected to absorb these reductions to counterbalance their current losses.
Is there a fuel shortage in India?
No, the government has assured that there is no shortage of petrol, diesel, or LPG, with sufficient supplies available.
What are the current global oil price trends?
Global oil prices have recently declined, with Brent crude futures falling to $105.53 per barrel.
