New Delhi, March 27: The Government of India has reduced excise duties on petrol and diesel by ₹10 per litre each, lowering rates to ₹3 per litre for petrol and zero for diesel, in a bid to cushion the impact of rising global oil prices.
The move comes amid heightened volatility in global energy markets triggered by tensions in West Asia, particularly disruptions linked to the Strait of Hormuz.
In addition, the government has provided duty exemptions on fuel exports and supplies to foreign-going aircraft, while also granting customs duty relief on imported aviation turbine fuel (ATF) by rescinding a 2022 notification.
Oil marketing companies (OMCs) are expected to absorb the duty reduction to partially offset mounting losses, which are estimated at around ₹48.8 per litre due to elevated crude prices.
Despite the global uncertainty, fuel supply fundamentals remain stable. The Ministry of Petroleum and Natural Gas has reiterated that India’s petroleum and LPG supplies are fully secure, with around 60 days of stock cover available against a total reserve capacity of 74 days.
The government also confirmed that crude procurement for the next two months has been secured and that there is no shortage of petrol, diesel, or LPG across the country.
Meanwhile, global crude benchmarks showed some easing, with Brent prices declining to around $105.53 per barrel and US WTI to $92.08, offering marginal relief to import-dependent economies.
The duty cut, combined with supply assurances, reflects the government’s strategy to balance consumer price stability with energy security as geopolitical tensions continue to disrupt global supply chains.
