Bhubaneswar: The Union Government has implemented a significant reduction in central excise duty on petrol and diesel to insulate domestic consumers from the volatility of global energy markets.
Chief Minister Mohan Charan Majhi welcomed the decision, noting that it reflects the center’s proactive and citizen-centric approach. While state-run oil marketing companies have kept pump prices steady for now to recover previous losses, the duty cut prevents a looming price hike that would have impacted transportation costs and the price of essential commodities. The new rates have come into effect immediately across the country, providing a crucial safety net for the national economy.
In a high-level decision taken late on Thursday, March 26, 2026, the Ministry of Finance slashed the special additional excise duty on petrol by 10 rupees per litre, bringing it down to 3 rupees from the previous 13 rupees. Similarly, the duty on diesel has been reduced by 10 rupees per litre, effectively bringing the levy to zero.
This strategic intervention comes as international crude prices have surged over 100 dollars per barrel due to the escalating West Asia crisis and supply disruptions in the Strait of Hormuz. By taking a hit on its own taxation revenues, estimated at approximately 1.75 lakh crore rupees annually, the government has moved to absorb the rising costs that would have otherwise led to a sharp spike in retail fuel prices.
Union Finance Minister Nirmala Sitharaman stated that the measure is intended to provide immediate protection to citizens from the vagaries of international costs. To further prioritize the domestic market, the government has also imposed export duties of 21.5 rupees per litre on diesel and 29.5 rupees per litre on aviation turbine fuel. This ensures that refineries prioritize domestic supply over international exports during the ongoing global uncertainty.