Govt Cuts Excise Duty on Petrol From Rs 13 to Rs 3

Mumbai, March 27: The government has reduced excise duty on petrol to Rs 3 per litre and eliminated the levy on diesel, aiming to cushion consumers from the impact of surging global crude prices amid the ongoing Middle East conflict.

In a notification issued late on March 26, the Finance Ministry lowered excise duty on petrol from Rs 13 per litre to Rs 3, while cutting the duty on diesel from Rs 10 to zero. The revised rates have come into effect immediately, the ministry said.

Oil prices fell on Friday after US President Donald Trump signalled progress in talks with Iran and halted strikes on key energy infrastructure. Crude oil on COMEX is now at $93.67 per barrel, down 81 cents or 0.86% from yesterday. It opened at $93.31, hit a high of $94.20 and a low of $92.08 today.

Brent crude and WTI each fell nearly 1% in early trading, a brief respite following the prior session’s 5% surge driven by supply disruption fears.

Global oil prices had surged to as high as $119 per barrel earlier this month amid escalating tensions involving Iran, before easing to around $100 per barrel.

In contrast to the slash in excise duty, the government has imposed a special additional excise duty of Rs 50 per litre on aviation turbine fuel. However, after accounting for exemptions and adjustments, the effective levy is estimated to be considerably lower, at around Rs 29.5 per litre.

OEM Shares Down

The shares of IOCL, HPCL and BPCL were trading in the red during noon on Friday.

US President Donald Trump announced a 10-day pause on strikes against Iran’s energy infrastructure, extending the deadline to April 6 and offering markets near-term relief — though substantial uncertainty over the Strait of Hormuz closure persists.

However, the conflict showed no signs of easing as fresh strikes were reported in Iran, Israel and Lebanon. Israel struck key infrastructure at multiple locations inside Iran, while Iranian missiles targeted not just Israel but also the UAE.

Source: 

• https://comexlive.org/crude-oil/
• https://www.bseindia.com/stock-share-price/indian-oil-corporation-ltd/ioc/530965/
• https://www.bseindia.com/stock-share-price/hindustan-petroleum-corporation-ltd/hindpetro/500104/
• https://www.bseindia.com/stock-share-price/bharat-petroleum-corporation-ltd/bpcl/500547/