Petrol, diesel prices in your city to come down after government cuts excise duty by Rs 10? Here's what we know

With the government slashing excise duty to Rs 3 per litre from Rs 13 on petrol and to zero from Rs 10 for diesel, there has been speculation that the prices of petrol and diesel might go down in India. However, there is little to cheer for Indian citizens as most of the cuts will be absorbed by the Oil Marketing Companies (OMCs) who are under severe pressure as international oil prices have shot up by nearly 50 per cent.

In theory, such a move should result in lower fuel prices at the pump. However, in reality, retail fuel prices in India are not directly regulated by the government.

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Petrol, diesel prices come down?

The oil marketing companies will not immediately pass on the benefit of the duty cut to consumers. So, the prices of petrol and diesel might not go down anytime soon. The key reason is that oil companies have been absorbing the impact of elevated crude oil prices in recent weeks amid the ongoing conflict in West Asia.

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OMCs are currently incurring losses of around ₹48.8 per litre on petrol and diesel sales, largely due to the sharp surge in Brent crude prices. The international benchmark has crossed the $100 per barrel mark amid the ongoing US–Israel conflict with Iran and the disruption in the Strait of Hormuz, which has severely impacted global oil supply routes.

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What petroleum minister said

In a long X post, Petroleum Minister Hardeep Singh Puri said: "International crude prices have gone through the roof in the last month, from around US$70 per barrel to around US$122 per barrel. Consequently, petrol and diesel prices for consumers have gone up all over the world. Prices have increased by around 30 to 50 per cent in South East Asian countries, 30 per cent in North American countries, 20 per cent in Europe, and 50 per cent in African countries."

"The Modi government had two choices - either increase prices drastically for citizens of Bharat as all other nations have done or bear the brunt on its finances so that Indian citizen is insulated from international volatility."

"... in keeping with the commitment of last four years, since the conflict in Russia-Ukraine started, the govvernment decided to take a hit on its own finances again to safeguard the Indian citizen," Hardeep Puri said.



The excise duty cut also comes a day after Nayara Energy, the country's largest private fuel retailer increased petrol and diesel prices by Rs 5.3 and Rs 3 per litre, respectively. In such a scenario, companies may opt to use the duty relief to recover earlier losses or stabilise their margins instead of immediately reducing prices. As a result, even though the government has lowered its tax component, the full benefit may not be passed on to consumers right away.

Petrol, Diesel prices today (March 27)

There has been no change in the prices of petrol and diesel on March 27, 2026 across major Indian cities. Check the latest fuel rates here:

City	Petrol (₹/litre)	Diesel (₹/litre)

New Delhi

94.77

87.67

Mumbai

103.54

90.03

Kolkata

105.45

92.02

Chennai

100.84

92.39

Bengaluru

102.96

90.99

Chandigarh

94.30

82.45