Fuel Tax Cut Announced – Diesel Duty Now Zero

Published ByKonica Singh

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2026-03-27

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Fuel Tax Cut Announced – Diesel Duty Now Zero

Diesel duty reduced to zero Petrol duty also cut by govt No immediate drop in fuel prices likely

The Government of India has announced a major fuel tax revision, cutting excise duty on petrol and completely removing it on diesel. This move comes as global crude oil prices continue to rise, putting pressure on fuel costs.

Diesel Duty Reduced To Zero

In a big relief measure, the government has reduced the special additional excise duty on diesel from Rs 10 per litre to zero.

At the same time, the duty on petrol has been reduced from Rs 13 per litre to Rs 3 per litre. The new rates have come into effect immediately across the country.

Also Read: No Petrol Diesel Shortage in India - IOCL, BPCL Issue Statement

Move Comes Amid Rising Crude Prices

This decision has been taken as global oil prices remain high due to geopolitical tensions and supply issues.

By cutting fuel taxes, the government aims to reduce the impact of rising crude oil prices on the domestic market and avoid a sharp increase in fuel prices.

No Immediate Price Drop Expected

Even after this tax cut, petrol and diesel prices at fuel stations may not come down right away.

The benefit is likely to be used by oil marketing companies to cover losses they have faced due to higher crude oil prices, instead of passing it on directly to consumers.

Export Duty Introduced On Fuel

Along with the tax cut, the government has also introduced export duties on diesel and aviation turbine fuel.

This step is aimed at ensuring enough fuel remains available within India and to control excessive exports during the current global uncertainty.

Also Read: Bigger Size, Hybrid Engine: The New Hyundai Creta is Coming

Focus On Stability In Fuel Supply

With global oil markets showing volatility, the Government of India is trying to maintain stability in the domestic fuel supply.

Citizens are advised to stay informed through official updates, as the government continues to take steps to manage fuel prices and supply.

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About Author

Konica Singh

Sub-Editor

Konica Singh is a passionate Automotive Journalist who brings the world of cars to life, from EV trends to exciting new car launches. Backed by 7 years in content creation, she is skilled in writing, editing, and SEO strategy that drives engagement.

Education: MA English (Delhi University)

Social Media: LinkedIn | Instagram | Twitter | Facebook

Email: konica.carlelo@gmail.com

Location: New Delhi

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