The world oil market is once again under pressure. Oil supplies are being disrupted by tensions in West Asia, particularly around the Strait of Hormuz. This small waterway is used to transport almost 20 per cent of the world’s oil. Any disruption here results in an increase in prices worldwide. It is important to note that India, which imports over 85 per cent of its crude needs, faces significant impact.
Such shocks result in rising fuel prices, inflation, rupee depreciation, and cascading effects across transportation, manufacturing, and Logistics. It is crucial to review the most recent significant revision in April 2025 in order to put the recent policy change in context.
Central excise Taxes were then Rs 10 per litre for diesel and Rs 13 per litre for gasoline. These rates were designed to strike a balance between consumer affordability and government revenue, but they left little room to absorb new price shocks. The government has taken action in response to the current crisis. The petrol and diesel excise tax has been reduced by Rs 10 per litre. As a result, customers will benefit from lower retail prices of fuels. At the same time, the government has imposed export duties.
The duty on diesel exports is now Rs 21.5 per litre. Exports of aviation turbine fuel (ATF) are subject to a duty of Rs 29.5 per litre. This helps to ensure that the fuel does not leave India. Announcing this move earlier today at 9:42 AM on X, our Finance Minister – Shri Nirmala Sitharaman stated – “In view of the West Asia crisis, the central excise duty on petrol and diesel for domestic consumption has been reduced by Rs 10 per litre each.
This will provide protection to consumers from rise in prices. Hon. PM @narendramodi has always ensured that citizens are protected from vagaries of supply and costs of essential goods. Further, duties have been imposed on exports of Diesel at Rs 21.5 per litre and on ATF at Rs 29.5 per litre. This will ensure adequate availability of these products for domestic consumption. The Parliament has been notified about the same.” Despite this, prices remain under pressure.
As of 27 March, 11:45 AM, crude oil is priced at USD 93.89. Brent Crude trades at USD 107.84.
Petrol Prices (Rs per litre) – Lowest to Highest (Top 5) City Petrol Price (Rs/L)
Ahmedabad 94.63
Lucknow 94.69
New Delhi 94.77
Gurgaon 95.36
Noida 95.12
Diesel Prices (Rs per litre) – Lowest to Highest (Top 5) City Diesel Price (Rs/L)
New Delhi 87.67
Lucknow 87.81
Gurgaon 87.83
Noida 88.29
Ahmedabad 90.3
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