1 min readUpdated: Mar 27, 2026 09:02 AM IST

The Centre has slashed ​excise ​duties on petrol ⁠and ​diesel. The excise duty on petrol has been slashed from Rs 13 to Rs 3 per litre and on diesel, the excise duty is now zero, down from the previous Rs 10. The reduced excise rate benefits could trickle down to customers soon. However, no formal announcement to slash the retail rates of fuel has been made yet.

What does reduction in petrol, diesel excise duty mean for you?

A reduction in excise duty on petrol and diesel means the government is collecting less tax per litre of fuel sold. This directly lowers the base price of fuel. For retail customers, this usually translates into cheaper prices at the fuel pump almost immediately, since fuel prices are closely tied to government-set tax components.

The impact of the reduction in excise duty of petrol and diesel is also likely to translate into macro-economic benefits as cheaper transportation eventually bring down the cost of goods and services.