Kamal Ghorui
Government has revised its fuel duty structure, lowering the special additional excise duty on petrol to Rs 3 per litre while removing it entirely on diesel. The decision comes against the backdrop of ongoing disruptions in global oil supply chains due to the conflict in the Middle East, where Iran continues to tighten control over the Strait of Hormuz.According to a government order dated Thursday, “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.”
After the last revision back in April 2025, the excise duty on petrol stood at Rs 13 per litre, while for diesel it was Rs 10 per litre.Meanwhile in global markets, crude prices cooled on Friday after the United States indicated that negotiations with Iran were “going very well” and extended its deadline with the country by 10 days. The shift in sentiment saw both major benchmarks decline by around 2% in early trade.Brent crude, which had climbed as high as $108 per barrel, slipped to $105.75 per barrel, down 2.08%. Meanwhile, West Texas Intermediate (WTI) fell 1.94% to $92.67 as of 7:50 am IST. The pullback follows a sharp rally in the previous session, when Brent rose 4.8% to settle at $101.89 per barrel, as hopes of a return to normal operations in the Strait weakened. Prices remain well above the roughly $70 levels recorded before the conflict began, with the US benchmark also having risen 4.6% to $94.48 per barrel.Earlier on Thursday, Nayara Energy, India’s largest private fuel retailer, raised petrol prices by Rs 5 per litre and diesel by Rs 3 per litre amid rising input costs tied to the Middle East situation. The company, which operates 6,967 of the country’s 102,075 petrol pumps, has decided to pass on part of the increased costs to consumers, PTI sources said.
