Petrol, diesel excise duty cut: Here’s how much excise you will still have to pay
Petrol and diesel excise duty cut: The government has reduced excise duty on petrol and diesel following record losses faced by oil companies due to a rise in international oil prices.
- Mar 27, 2026,
- Updated Mar 27, 2026 4:23 PM IST
The government announced a sharp cut of Rs 10 in petrol and diesel excise duty, bringing the special additional excise duty on petrol to Rs 3 from Rs 13 a litre earlier and zero on diesel from Rs 10 per litre earlier.
This will lead to an estimated revenue loss of Rs 1.75 lakh crore.
Prices of fuel have climbed due to the West Asia war by 50 per cent to over $100 per barrel. The decision to slash excise duty came as the government wanted to eventually ease the burden on customers.
DON'T MISS | Petrol, diesel excise cut: Is fuel getting cheaper for you?
Despite the excise cuts, customers would be paying an excise of Rs 11.9 per litre and Rs 7.80 per litre, due to a mix of other duties and cess.
Here is the breakdown:
Petrol: Rs 11.9 per litre, which includes:
Rs 1.40 basic excise duty Rs 3 special additional excise duty Rs 2.50 agriculture infrastructure and development cess Rs 5 road infrastructure cess
Diesel: Rs 7.80 per litre, which includes:
Rs 1.80 basis excise duty Rs 4 agriculture infrastructure and development cess Rs 2 road and infrastructure cess
The government has reduced excise duty on petrol and diesel following record losses faced by oil companies due to a rise in international oil prices. Crude oil prices, the raw material for petrol and diesel, have increased by nearly 50 per cent this month amid the conflict involving the US, Israel, and Iran, which disrupted global supply.
MUST READ | Govt slashes excise duty on petrol and diesel; check new rates
Despite crude oil prices crossing $100 per barrel, retail pump prices remained unchanged. This price freeze caused significant losses for oil companies, impacting their working capital.
The excise duty cut aims to ease these losses. The reduction will offset the Rs 24 per litre increase in petrol and Rs 30 per litre hike in diesel prices that would have been necessary due to the rise in international oil prices.
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).
The government announced a sharp cut of Rs 10 in petrol and diesel excise duty, bringing the special additional excise duty on petrol to Rs 3 from Rs 13 a litre earlier and zero on diesel from Rs 10 per litre earlier.
This will lead to an estimated revenue loss of Rs 1.75 lakh crore.
Prices of fuel have climbed due to the West Asia war by 50 per cent to over $100 per barrel. The decision to slash excise duty came as the government wanted to eventually ease the burden on customers.
DON'T MISS | Petrol, diesel excise cut: Is fuel getting cheaper for you?
Despite the excise cuts, customers would be paying an excise of Rs 11.9 per litre and Rs 7.80 per litre, due to a mix of other duties and cess.
Here is the breakdown:
Petrol: Rs 11.9 per litre, which includes:
Rs 1.40 basic excise duty Rs 3 special additional excise duty Rs 2.50 agriculture infrastructure and development cess Rs 5 road infrastructure cess
Diesel: Rs 7.80 per litre, which includes:
Rs 1.80 basis excise duty Rs 4 agriculture infrastructure and development cess Rs 2 road and infrastructure cess
The government has reduced excise duty on petrol and diesel following record losses faced by oil companies due to a rise in international oil prices. Crude oil prices, the raw material for petrol and diesel, have increased by nearly 50 per cent this month amid the conflict involving the US, Israel, and Iran, which disrupted global supply.
MUST READ | Govt slashes excise duty on petrol and diesel; check new rates
Despite crude oil prices crossing $100 per barrel, retail pump prices remained unchanged. This price freeze caused significant losses for oil companies, impacting their working capital.
The excise duty cut aims to ease these losses. The reduction will offset the Rs 24 per litre increase in petrol and Rs 30 per litre hike in diesel prices that would have been necessary due to the rise in international oil prices.
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).