Centre cuts excise duty on petrol and diesel by ₹10 a litre; pump prices unchanged
On 27 March 2026 the Centre cut excise duty on petrol and diesel by ₹10 per litre to offset oil companies' losses as crude rose from about $70 to $122 a barrel; retail prices were kept unchanged.
Summary
The Government of India reduced excise duty by ₹10 per litre on both petrol and diesel with immediate effect on 27 March 2026. International crude prices had risen from about USD 70 to around USD 122 per barrel in a month, nearly 75%, due to the West Asia conflict. Retail pump prices were not changed; the cut instead offsets part of the under-recoveries of public sector oil marketing companies IOCL, BPCL and HPCL, estimated at about ₹26 a litre on petrol and ₹81.90 on diesel, or about ₹2,400 crore a day combined.
Key facts
- Cut
- ₹10 per litre on both petrol and diesel, immediate effect
- Date
- 27 March 2026
- Crude price
- From ~USD 70 to ~USD 122 per barrel in a month (~75%)
- Retail prices
- Unchanged
- OMC under-recovery
- ~₹26/litre petrol, ~₹81.90/litre diesel; ~₹2,400 crore a day
- OMCs
- IOCL, BPCL, HPCL
Practice MCQs 3 questions
By how much did the Centre cut excise duty on petrol and diesel on 27 March 2026?
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Correct answer: A — ₹10 per litre
Excise duty was reduced by ₹10 per litre on both petrol and diesel with immediate effect.
Consider the following statements about the excise duty cut of 27 March 2026: 1. Retail pump prices of petrol and diesel were reduced by the same amount. 2. The cut offsets part of the under-recoveries of public sector oil marketing companies. Which of the above is/are correct?
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Correct answer: B — 2 only
Retail pump prices did not change. The reduction directly reduces the under-recoveries absorbed by IOCL, BPCL and HPCL.
According to the government (March 2026), international crude prices had risen in about a month from roughly USD 70 per barrel to around:
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Correct answer: B — USD 122
Crude rose from approximately USD 70 to around USD 122 per barrel – nearly 75% in under four weeks.