India cuts special excise duties on petrol, diesel

India slashed its special ​excise duties on petrol and diesel, as fuel ‌prices stay volatile with supplies choked by the ​Iran war.

In a government order on ⁠Thursday (March 26, 2026), Union Finance Ministry reduced the special excise duty on petrol to ₹3 ($0.0318) per litre from ₹13 ‌earlier. It also cut the duty on diesel to zero from ₹10.

The ‌U.S.-Israeli war with Iran has led to ‌a ⁠near-closure of the Strait of Hormuz, which ⁠serves as a conduit for 40% of crude oil imports, hurting shipping and gas supplies.