India Cuts Excise Duty on Petrol and Diesel Amid Global Oil Price Surge

The Indian government has taken steps to cushion oil marketing companies from losses incurred due to selling auto fuels below cost.

The Special Additional Excise Duty (SAED) on petrol and diesel was reduced by ₹10 per litre, effective March 26, 2023.

This move brings excise duty on petrol down from ₹13 to ₹3 per litre and eliminates the duty on diesel entirely.

Analysts estimate that the excise duty cut could absorb 30-40% of the annualised losses faced by oil marketing companies at current price levels.