Government Cuts Fuel Excise Duty to Ease Burden Amid Global Price Surge

New Delhi | 27 March 2026 The Centre’s decision to reduce excise duty on petrol and diesel has been welcomed by Petroleum and Natural Gas Minister Hardeep Singh Puri and Finance Minister Nirmala Sitharaman, who described it as a timely step to protect citizens from rising global energy prices. The move comes at a time when international crude oil prices have sharply increased due to ongoing geopolitical tensions in West Asia. Petroleum Minister Puri stated that the government has chosen to absorb the financial impact instead of passing the burden on to consumers. He noted that crude oil prices have surged significantly in recent weeks, rising from around $70 per barrel to nearly $122 per barrel. Despite global fuel price hikes, India has taken measures to shield its citizens from volatility. He also mentioned that oil marketing companies have been facing financial pressure, and the duty cut will help ease their losses. Finance Minister Sitharaman echoed similar views, saying the reduction aims to protect consumers from sudden price shocks. She added that the government has also imposed duties on diesel exports and aviation turbine fuel to ensure adequate domestic supply. The Centre has reiterated its commitment to maintaining stability in essential commodities and safeguarding citizens from global market fluctuations. According to the official notification issued on March 26, excise duty on petrol has been reduced to ₹3 per litre from ₹13, while diesel duty has been cut to zero from ₹10 per litre. The changes are effective immediately. Additionally, a windfall tax of ₹21.5 per litre has been imposed on diesel exports. The government has urged citizens to remain calm, dismissing rumours of shortages or lockdowns as baseless. Government Cuts Fuel Excise Duty to Ease Burden Amid Global Price Surge The Centre’s decision to reduce excise duty on petrol and diesel has been welcomed by Petroleum and Natural Gas Minister Hardeep Singh Puri and Finance Minister Nirmala Sitharaman, who described it as a timely step to protect citizens from rising global energy prices. The move comes at a time when international crude oil prices have sharply increased due to ongoing geopolitical tensions in West Asia. Petroleum Minister Puri stated that the government has chosen to absorb the financial impact instead of passing the burden on to consumers. He noted that crude oil prices have surged significantly in recent weeks, rising from around $70 per barrel to nearly $122 per barrel. Despite global fuel price hikes, India has taken measures to shield its citizens from volatility. He also mentioned that oil marketing companies have been facing financial pressure, and the duty cut will help ease their losses. Finance Minister Sitharaman echoed similar views, saying the reduction aims to protect consumers from sudden price shocks. She added that the government has also imposed duties on diesel exports and aviation turbine fuel to ensure adequate domestic supply. The Centre has reiterated its commitment to maintaining stability in essential commodities and safeguarding citizens from global market fluctuations. According to the official notification issued on March 26, excise duty on petrol has been reduced to ₹3 per litre from ₹13, while diesel duty has been cut to zero from ₹10 per litre. The changes are effective immediately. Additionally, a windfall tax of ₹21.5 per litre has been imposed on diesel exports. The government has urged citizens to remain calm, dismissing rumours of shortages or lockdowns as baseless.