The All India Motor Transport Congress said that the excise duty is a major source of government revenue, and reducing it reflects a balanced approach between economic priorities and public welfare
Transporters said the move would prevent an increase in fuel prices for consumers, despite rising international oil costs. Representational Pic/File
Transporters across India have welcomed the Centre’s decision to reduce excise duty on fuel, calling it a timely and commendable step.
Industry leaders said that the move would help ease pressure on both transport operators and the wider economy.
The government has significantly cut excise duties, reducing petrol tax from Rs 13 to Rs 3 per litre and bringing diesel duty down from Rs 10 to zero.
The decision comes at a time when global crude oil prices have surged due to geopolitical tensions in West Asia.
Relief for common people and industry
Transporters said the move would prevent an increase in fuel prices for consumers, despite rising international oil costs.
They noted that many countries have increased petrol and diesel prices, while India has taken steps to shield its citizens from the impact.
Balancing revenue and public welfare
According to Bal Malkit Singh of the All India Motor Transport Congress, excise duty is a major source of government revenue, and reducing it reflects a balanced approach between economic priorities and public welfare.
Step to ease economic pressure
Transporters added that any rise in fuel prices would have directly affected the cost of goods and services, impacting the common man.
The reduction in duty is expected to help control inflationary pressures and support economic stability.
While the duty cut may not immediately lower retail fuel prices, industry experts say it shows the government’s intent to protect citizens from global price volatility.
Excise Duty on petrol and diesel slashed
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."
In view of the West Asia crisis, the central excise duty on petrol and diesel for domestic consumption has been reduced by ₹10 per litre each. This will provide protection to consumers from rise in prices. Hon. PM @narendramodi has always ensured that citizens are protected from…
— Nirmala Sitharaman (@nsitharaman) March 27, 2026
Exemptions on duties
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.
Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, wrote on X, "International crude prices have gone through the roof in the last 1 month from around 70 dollars/barrel to around 122 dollars/barrel. Consequently, petrol and diesel prices for consumers have gone up all over the world. Prices have increased by around 30 per cent-50 per cent in South East Asian countries, 30 per cent in North American countries, 20 per cent in Europe and 50 per cent in African countries. The Modi Government had two choices- either increase prices drastically for citizens of Bharat as all other nations have done or bear the brunt on its finances so that Indian citizen is insulated from international volatility."
International crude prices have gone through the roof in the last 1 month from around 70 dollars/barrel to around 122 dollars/barrel. Consequently, petrol and diesel prices for consumers have gone up all over the world. Prices have increased by around 30 per cent-50 per cent in South East Asian…
— Hardeep Singh Puri (@HardeepSPuri) March 27, 2026
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