India cuts excise duty on petrol, diesel
India just slashed the Special Additional Excise Duty on petrol and diesel by ₹10 per liter, dropping petrol excise to ₹3 and removing it completely for diesel.
This change, effective March 27, 2026, is meant to help oil companies like IOC handle soaring costs and help oil-marketing companies by reducing under-recoveries being absorbed by public-sector OMCs.
Government has imposed export duty on diesel
Crude oil prices have shot up from about $70 to nearly $122 per barrel, driven by escalating tensions in West Asia and disruptions to global supply chains.
To keep local supplies steady, the government also put an export duty on diesel so domestic demand comes first.
Plus, they've boosted commercial LPG allocation (now at 70%) for key industries.
Ministry official Sujata Sharma reassured that India has enough crude reserves for two months and domestic output of LPG has increased by almost 40%, so there's a buffer if things get rough globally.