Excise Duty Slashed on Petrol to Rs. 3 per Liter and Diesel to Nil Amid Fuel Crisis

The government of India has slashed the excise duty on petrol and diesel. The central government lowered excise taxes on petrol and diesel by Rs. 10 per liter on Friday, reports PIB, which brought the effective central excise tax on petrol down to Rs. 3 per liter and eliminated it entirely for diesel, according to media reports.

Furthermore, to ensure an adequate domestic supply, the finance ministry imposed export levies of Rs. 21.5 per liter for diesel and Rs. 29.5 per liter for aviation turbine fuel (ATF).

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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%-50% in South East Asian… — Hardeep Singh Puri (@HardeepSPuri) March 27, 2026

The reduction, however, is unlikely to result in cheaper prices for the majority of consumers at petrol stations, according to industry sources, since it will mostly be absorbed by oil marketing businesses (OMCs) in order to make up for substantial losses on pump sales.

For a month and more, in India, there is a fuel surcharge levied on food. Many restaurants and cafes have applied for the extra charge in bills, which also went viral on social media.