Centre Cuts Excise Duty On Petrol And Diesel By 10 Rupees Per Litre

By Jony Shekhawat | Published Date : March 27, 2026

Government reduced excise duty on petrol and diesel to support oil companies facing losses due to rising global crude prices, but pump prices remain unchanged.

The Finance Ministry has reduced excise duty on petrol and diesel in a big move. Now duty on petrol is cut down to Rs. 3 per litre from Rs.13 and for diesel it is removed completely.
Nirmala Sitharaman said this step is taken to manage the pressure coming from rising global crude oil prices. Due to the situation in West Asia, fuel cost is going up, so government is trying to control impact.

Prices Will Not Change for Now

Table of Contents

1. Prices Will Not Change for Now

2. Oil Companies Facing Losses

3. Global Prices Creating Pressure

4. Impact on Transport and Economy

5. Situation Needs Close Watch

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Even after this change, prices at petrol pump will not reduce. This may confuse some people, but rates are already fixed from long time. Big companies like Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation are not changing prices right now.

In Delhi, petrol is still around ₹94 and diesel near ₹87. So normal users will not feel any difference immediately.

Oil Companies Facing Losses

Main reason behind this decision is losses of oil companies. When crude oil prices go high globally, companies have to bear extra cost. Reports say that if crude goes around $100 or more, companies may lose around ₹11 per litre on petrol and ₹14 on diesel. Some estimates are even higher.

Because of this, government reduced duty so that companies don’t face too much pressure. Otherwise, prices for transport like trucks, buses, mini trucks and pickups can be affected in long run.

Global Prices Creating Pressure

Crude oil prices have increased a lot in recent months. Earlier it was around $70 per barrel, then it went above $120 and now again close to $100. India depends on imports for around 88% of its oil needs. So when global price goes up, impact is seen here also.

Recently, one private company also increased petrol and diesel prices, which shows pressure is already there in the market.

Impact on Transport and Economy

Fuel price is very important for the transport sector. Vehicles like trucks, buses, mini trucks and pickups depend fully on diesel and petrol. If companies keep facing losses, at some point, prices may increase or services can get costly. That can affect goods transport and daily travel.

For now, government is trying to balance things. They are taking some revenue loss but helping oil companies survive this situation.

Situation Needs Close Watch

This is not first time the government has reduced excise duty. Earlier, also in 2022, a similar step was taken when global prices increased. Right now, situation is still uncertain. If crude prices go up again, more steps may be needed.

For common people, nothing changes immediately, but in the background, many things are being adjusted. So the coming months will be important to watch.

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Frequently Asked Questions on Commercial Vehicles

1. What change has the government made in fuel duty?

Ans: The government reduced petrol duty to ₹3 and removed diesel duty completely.

2. Will petrol and diesel prices decrease now?

Ans: No, prices at petrol pumps will remain the same for now.

3. Why did the government cut excise duty?

Ans: To support oil companies facing losses due to high global crude prices.

4. How does this impact the transport sector?

Ans: It helps control cost pressure on vehicles like trucks, buses and other transport services.

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