Breaking: Centre Cuts Excise Duty on Petrol, Diesel Amid Global Oil Crisis; Will Consumers Benefit?
Babushahi Network
New Delhi, March 27, 2026:
In a significant move amid rising global crude prices, the Government of India has reduced excise duty on fuel, bringing it down to ₹3 per litre on petrol and nil on diesel.
The decision comes against the backdrop of escalating geopolitical tensions in West Asia, particularly the ongoing conflict involving the Iran and disruption in the Strait of Hormuz, a key artery through which nearly one-fifth of the world’s oil supply passes.
? Key Highlights:
- Excise duty on petrol reduced to ₹3 per litre
- Excise duty on diesel brought down to zero
- Windfall tax on diesel exports fixed at ₹21.5 per litre
- Aviation Turbine Fuel (ATF) exempted from Special Additional Excise Duty
- Windfall tax on ATF exports set at ₹29.5 per litre
The move is expected to provide relief to oil marketing companies, which have been under pressure due to surging crude oil prices. However, retail prices of petrol and diesel remain unchanged for now, raising questions about whether consumers will immediately benefit from the duty cut.
There is no indication that consumers will be benefited from this excise cut or not.
As per the rates of Pterol and Diesel in the various cities and parts of the country, there is no relief to the consumers.
? Global Context
The ongoing crisis has significantly impacted global energy markets. Prior to the conflict, India sourced nearly 12–15% of its crude oil through routes affected by the tensions, particularly via the Strait of Hormuz.
⛽ Fuel Supply Stable, Says Government
Amid reports of panic buying in some regions, the Ministry of Petroleum and Natural Gas has assured that fuel supplies across the country remain stable.
“All retail outlets are functioning normally, and there is no shortage of petrol or diesel,” the ministry said, urging citizens not to believe rumours or resort to panic buying.
The government also confirmed that:
- All refineries are operating at high capacity
- Adequate crude oil inventories are in place
- Domestic LPG production has been increased to meet consumption needs
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