Petrol & Diesel Prices Cut by ₹10/Litre as Govt Slashes Excise Duty Amid Crude Oil Surge

By Ventura Research Team 2 min Read Mar 27, 2026

Petrol & Diesel Prices Cut by ₹10 After Excise Duty Reduction

SUMMARY

The government has reduced special additional excise duties on petrol and diesel by ₹10 per litre each, according to a Reuters report. The excise duty on petrol has been cut from ₹13/litre to ₹3/litre, while diesel duty has been reduced from ₹10/litre to nil. The move is expected to bring down retail fuel prices across the country.

Move Triggered by Global Energy Disruptions

The decision comes amid a global energy crisis driven by the ongoing US-Israel war on Iran and Tehran’s actions to restrict shipping through the Strait of Hormuz. The disruption in this important route has added to the concern regarding crude oil availability and price fluctuations in the world market.

Strategic Importance of the Strait of Hormuz

The Strait of Hormuz continues to be an important international route in terms of energy security, carrying around 2025 million barrels of crude oil and nearly 10 billion cubic feet of gas on a daily basis prior to the conflict. The route assumes critical importance in terms of energy security for India as well, with around 40-50% of its crude oil requirements, i.e., 2.2 to 2.8 million barrels a day, being routed through this route.

Recent Fuel Price Hike by Nayara Energy

The government’s move follows a recent price hike by Nayara Energy, India’s largest private fuel retailer. The company increased petrol prices by ₹5/litre and diesel prices by ₹3/litre. Nayara Energy operates 6,967 petrol pumps out of India’s total of 102,075 outlets and passed on part of the rising input costs to consumers.

Pressure from Rising Crude Prices

Fuel retailers in India have been under pressure as retail prices remained largely unchanged despite a sharp surge in global crude oil prices. Oil prices have increased by nearly 50 percent since February 28, when strikes by the US and Israel on Iran escalated tensions in the Middle East.

India’s Crude Supply Position Remains Stable

The Indian government has said that despite the geopolitical tensions in the Middle East, India’s crude position remains stable. This is because India has been able to purchase crude supplies from Western nations to compensate for the disruptions caused by the Strait of Hormuz situation.

The Indian oil ministry said that currently, India is procuring crude supplies from over 41 suppliers across the globe. Moreover, crude supplies have been arranged for over 100 percent utilisation of refineries. Also, crude supplies are already arranged for the next 60 days.