The government of India has reduced excise duty on petrol and diesel by ₹10 per litre each, bringing central taxes down to ₹3 per litre on petrol and eliminating them entirely for diesel. However, this cut is unlikely to reduce retail fuel prices for most consumers, as oil marketing companies (OMCs) are expected to use the relief to offset ongoing losses.

Industry estimates suggest OMCs are currently losing about ₹48.8 per litre on fuel sales, largely due to rising global crude prices. Brent crude has crossed the $100 per barrel mark following geopolitical tensions linked to the US-Israel conflict with Iran and disruptions in the Strait of Hormuz.

The duty cut comes shortly after Nayara Energy, a major private fuel retailer backed by Russia's Rosneft and Kesani Enterprises, increased petrol and diesel prices by ₹5.3 and ₹3 per litre, respectively.

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