India Slashes Fuel Excise Duty to Zero on Diesel Amid West Asia Energy Crisis​

NEW DELHI, MAR 27: In a landmark move to stabilize the domestic economy against a volatile global energy market, the Government of India has announced a massive reduction in excise duty on petrol and diesel.

Under the new notification from the Finance Ministry, which takes effect immediately, the levy on petrol has been slashed from ₹13 to just ₹3 per litre, while the excise duty on diesel has been completely eliminated, dropping from ₹10 to zero.

This aggressive fiscal intervention is designed to cushion Indian consumers and businesses from the fallout of the ongoing conflict in West Asia, specifically involving Iran, which has sent shockwaves through international crude oil markets.​

The duty cut comes as a direct response to severe disruptions in critical maritime corridors, such as the Strait of Hormuz, a vital artery for global oil transit.

Union Petroleum Minister Hardeep Singh Puri emphasized that the Centre has made a conscious choice to absorb the financial burden of these rising costs rather than passing the volatility onto the public.

While the move is a significant step toward controlling inflation and ensuring energy security, industry experts caution that immediate price drops at the pump may be tempered.

Oil marketing companies (OMCs), currently grappling with heavy under-recoveries due to sustained high crude prices, are expected to use the tax relief to offset their existing losses and stabilize their balance sheets.