Govt cuts excise duty on petrol, diesel; slaps windfall tax on fuel exports
GST
Dated:- 27-3-2026
PTI
New Delhi, Mar 27 (PTI) The government has slashed excise duty on petrol and diesel by Rs 10 per litre, averting a pump price hike that had become necessary because of soaring global oil prices.
The cut in special additional excise duty on petrol from Rs 13 a litre to Rs 3 and the same on diesel from Rs 10 per litre to nil, will lead to an estimated revenue loss of Rs 1.75 lakh crore.
Alongside, the government brought back duties on export of diesel and aviation turbine fuel (ATF), according to a notification issued late on Thursday.
The government also imposed an export duty of Rs 21.5 per litre on diesel and Rs 29.5 per litre on aviation turbine fuel (ATF), reinstating a levy first introduced in July 2022 to curb windfall gains by refiners following Russia's invasion of Ukraine and later withdrawn in December 2024.
However, unlike last time, there is no wi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
xcise duty, Rs 4 agriculture infrastructure and development cess, and Rs 2 road and infrastructure cess).
Considering 175 billion litres of auto fuel sales annually (115 billion litres of diesel and 60 billion litres of petrol), the impact of the duty cut will be Rs 1.75 lakh crore annually.
The excise duty cut follows record losses that oil companies suffered from the surge in international oil prices. Prices of crude oil, the raw material for making petrol and diesel, have surged almost 50 per cent this month as the US and Israel attack on Iran and Tehran's sweeping retaliation disrupts global supply.
Despite oil prices rising above USD 100 per barrel, retail pump rates had remained on freeze. This had led to oil companies incurring record losses which had even started impacting their working capital.
To ease the pain, the government cut excise duty. The reduction will be adjusted against the Rs 24 a litre required increase in petrol and Rs 30 per litre hike in diesel
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
recoveries stand at approximately Rs 26 per litre on petrol and Rs 81.90 per litre on diesel. The combined daily under-recovery being absorbed by OMCs is approximately Rs 2,400 crore,” an oil ministry statement said. Finance Minister Nirmala Sitharaman in a post on X said the reduction in excise duty “will provide protection to consumers from rise in prices”.
The government, she said, has always ensured that citizens are protected from vagaries of supply and costs of essential goods.
“Further, duties have been imposed on exports of diesel at Rs 21.5 per litre and on ATF at Rs 29.5 per litre. This will ensure adequate availability of these products for domestic consumption,” she added.
Oil Minister Hardeep Singh Puri said international crude prices have gone through the roof in the last one month from around USD 70 dollars per barrel to around USD 122.
“Consequently, petrol and diesel prices for consumers have gone up all over the world. Prices have increased by arou
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =