general
India cuts fuel taxes by 10 rupees per liter to shield consumers
New Delhi slashed central excise on petrol and diesel by 10 rupees per liter on March 26 to prevent a domestic price surge after crude oil spiked, sharply reducing tax receipts and increasing fiscal risk.
Mar 27th 2026 · India
Insights
- Central excise duties on petrol and diesel were reduced by 10 rupees per liter each.
- The cut aims to prevent pump prices rising after crude oil jumped from about $70 to roughly $122 a barrel amid the Iran war.
- Petroleum Minister Hardeep Singh Puri said the government has taken a huge hit to tax revenue.
- Absorbing fuel costs raises the risk of a wider fiscal deficit and could affect the growth and inflation outlook.