27 March,2026 11:09 AM IST | New Delhi | mid-day online correspondent
Finance Minister Sitharaman said in view of the West Asia crisis, central excise duty on petrol and diesel for domestic consumption has been reduced. File Pic/PTI
Centre on Friday announced that it has reduced excise duty on petrol and diesel by Rs 10 per litre each, bringing the duty down to Rs 3 per litre for petrol and zero for diesel.
The move is aimed at cushioning the impact of rising global oil prices amid ongoing geopolitical tensions due to the West Asia war.
In a post on X, Union Finance Minister Nirmala Sitharaman wrote, "In view of the West Asia crisis, the central excise duty on petrol and diesel for domestic consumption has been reduced by Rs 10 per litre each. This will provide protection to consumers from rise in prices. PM Modi has always ensured that citizens are protected from vagaries of supply and costs of essential goods."
She further stated, "Duties have been imposed on exports of Diesel at Rs 21.5 per litre and on ATF at Rs 29.5 per litre. This will ensure adequate availability of these products for domestic consumption. The Parliament has been notified about the same."
The government announced exemptions on duties for fuel exports and supplies to foreign-bound aircraft. In addition, it has withdrawn a 2022 notification and granted customs duty relief on imported aviation turbine fuel (ATF), providing further support to the aviation sector.
The decision comes against the backdrop of a global energy crisis linked to tensions involving the United States, Israel, and Iran, as well as concerns over disruptions in the Strait of Hormuz.
These developments have raised fears of a sharp increase in fuel prices worldwide.
Meanwhile, the oil marketing companies (OMCs) are expected to absorb the duty reduction to offset financial losses. Reports suggest that OMCs are currently incurring losses of around Rs 48.8 per litre due to high global crude prices, reported the IANS.
Despite recent volatility, global oil prices showed some decline. Brent crude futures fell by 2.29 per cent to USD 105.53 per barrel, while US WTI crude dropped by 2.54 per cent to USD 92.08, the news agency reported.
According to the IANS, the government has reassured citizens that there is no shortage of petrol, diesel, or LPG in the country. Officials stated that India currently has around 60 days of fuel stock, with a total reserve capacity of up to 74 days.
Authorities also confirmed that crude procurement for the next two months has already been secured.
The Petroleum Ministry has warned against rumours suggesting fuel shortages, calling them misleading and part of a coordinated attempt to create panic. It urged citizens to rely only on official information and remain calm.
(with IANS inputs)
