India cuts petrol diesel excise by ₹10, loses ₹5,500cr fortnightly
Business
The Indian government just slashed excise duty on petrol and diesel by ₹10 per liter, which means it'll lose about ₹5,500 crore in tax money every two weeks.
Announced on March 26, 2026, this move is mainly to help public sector oil companies deal with surging global crude prices, not to lower what you pay at the pump.
Government windfall tax yields ₹1,500cr fortnightly
To balance things out, a new windfall tax on diesel and aviation turbine fuel (ATF) will bring in around ₹1,500 crore every fortnight.
Plus, starting March 27, export duties on these fuels are kicking in to keep enough supply at home during the West Asia crisis.
If these changes stick around till fiscal 2027, the annual revenue loss could hit ₹1.43 lakh crore.