The government has revised fuel duties, reducing the burden on petrol and diesel amid ongoing volatility in global oil markets. The move comes as tensions in the Middle East continue to affect supply routes, particularly around the Strait of Hormuz.
Duty cuts announced
According to a government order issued on Thursday, the special additional excise duty on petrol has been sharply reduced, while diesel has seen a complete removal of this component.
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The order, as quoted by The Times of India, stated, "The additional excise duty on petrol was cut to Rs 3 per litre from Rs 13 per litre earlier. Meanwhile, the excise duty on diesel was cut to Rs 0 from Rs 10 per litre earlier."
Before this revision, last updated in April 2025, excise duty stood at Rs 13 per litre for petrol and Rs 10 per litre for diesel.
Linked to global oil disruptions
The decision comes at a time when global oil supply chains remain under strain due to the ongoing conflict in the Middle East. Iran's control over the Strait of Hormuz has added to concerns around supply movement, affecting pricing trends worldwide.
Oil markets, however, showed some cooling on Friday after the United States signalled progress in talks with Iran and extended its deadline by 10 days. This shift eased some immediate pressure on prices.
Crude prices ease after recent surge
In early trade, both major crude benchmarks saw a decline. Brent crude, which had earlier climbed to $108 per barrel, fell to $105.75 per barrel, down 2.08 per cent. Meanwhile, West Texas Intermediate (WTI) dropped 1.94 per cent to $92.67 as of 7.50 am IST.
This comes after a sharp rally in the previous session, when Brent rose 4.8 per cent to settle at $101.89 per barrel, while the US benchmark gained 4.6 per cent to $94.48. Despite the pullback, prices remain significantly higher than the roughly $70 levels seen before the conflict.
Retail prices see adjustments
On the domestic front, Nayara Energy increased fuel prices earlier this week. The company raised petrol prices by Rs 5 per litre and diesel by Rs 3 per litre, citing higher input costs linked to the global situation.
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Operating nearly 7,000 petrol pumps across India, Nayara Energy has passed on part of the increased costs to consumers, according to sources.
The duty revision and global price movements together reflect the continuing impact of geopolitical developments on fuel pricing.
