The government has revised the fuel excise duty structure, reducing special surcharge on petrol to Rs 3 per litre while completely eliminating duty on diesel. The decision comes against the backdrop of ongoing disruptions to global oil supply chains due to the conflict in the Middle East, as Iran continues to tighten its control over the Strait of Hormuz.According to a government order dated Thursday, “Additional excise duty on petrol has been reduced to Rs 3 per liter from Rs 13 per liter earlier. Meanwhile, excise duty on diesel has been reduced to Rs 0 from Rs 10 per liter earlier.”After the last revision in April 2025, excise duty on petrol stood at Rs 13 per litre, while diesel duty stood at Rs 10 per litre.Meanwhile, crude oil prices fell in global markets on Friday after the United States indicated that negotiations with Iran were “going very well” and extended the deadline with Iran by 10 days.
The shift in sentiment saw both benchmarks decline by about 2% in early trading.Brent crude, which had risen to $108 a barrel, fell to $105.75 a barrel, down 2.08%. Meanwhile, West Texas Intermediate (WTI) crude oil was down 1.94% at $92.67 as of 7:50 AM EST. This decline comes on the heels of a sharp rise in the previous session, when Brent rose 4.8% to settle at $101.89 a barrel, with weak hopes for a return to normal operations in the Strait.
Prices remain well above the roughly $70 levels recorded before the conflict began, with US benchmark crude also up 4.6% to $94.48 a barrel.Earlier on Thursday, Nayara Energy, India’s largest private fuel retailer, raised petrol prices by Rs 5 per liter and diesel by Rs 3 per liter amid rising input costs linked to the situation in the Middle East. The company, which operates 6,967 of the 102,075 petrol pumps in the country, has decided to pass on part of the increased costs to consumers, PTI sources said.
