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Centre Cuts Petrol, Diesel Excise Duty by ₹10/Litre, Shifts ₹2,400 Cr Daily Burden from OMCs Amid $147 Crude

Target:UPSC GS-IIIMPSCSSC GABankingTeachingPrelims HighMains MediumStatic GK Link
27 Mar 2026
~2 min
Source: Indian Express
Key Data:₹10 per litre excise duty cut₹2,400 crore daily under-recovery₹7.4 lakh crore petroleum revenue (2024-25)₹4.15 lakh crore central share₹3.25 lakh crore states' share₹1.69 lakh crore budgeted SAED (2026-27)
Bodies:Ministry of Petroleum and Natural GasPetroleum Planning and Analysis Cell (PPAC)Oil Marketing Companies (OMCs)SBI Research
Practice MCQs from today's news ▸
What This Article Covers

1.The Centre cut excise duty on petrol and diesel by ₹10 per litre each to ease pressure from high global crude oil prices.

2.The petroleum sector contributed ₹7.4 lakh crore to government revenues in 2024-25; this duty cut could cause a net revenue loss of at least ₹1.1 lakh crore in FY27.

3.The government also imposed an export tax on diesel to discourage exports and prioritize domestic supply, highlighting the fiscal and policy trade-offs during an energy crisis.

The Big Picture
Prelims · HighMains · Medium

The Central government has reduced the excise duty on petrol and diesel by ₹10 per litre to shield consumers and oil marketing companies from soaring global crude prices. This move shifts the daily burden of ₹2,400 crore from OMCs to the exchequer, potentially straining fiscal targets and impacting tax revenues of ₹7.4 lakh crore from the petroleum sector.

Exam Lens

Quick Exam Facts From News

Excise Duty Cut₹10 per litre each on petrol & diesel
Daily OMC Under-recovery₹2,400 crore
Petroleum Sector Revenue (2024-25)₹7.4 lakh crore total
Central Govt Share (2024-25)₹4.15 lakh crore
States' Share (2024-25)₹3.25 lakh crore
Budgeted SAED Collection (2026-27)₹1.69 lakh crore
Estimated Revenue Loss (FY27)₹1.1 lakh crore (net)
India's Crude Basket Price (Mar 24)$147.24 per barrel
10-Year Bond Yield6.925%

1-Minute Revision

  • ›Excise Duty Cut: ₹10 per litre each on petrol & diesel
  • ›Daily OMC Under-recovery: ₹2,400 crore
  • ›Target this Data: ₹10 per litre excise duty cut on petrol and diesel; ₹2,400 crore daily under-recovery by OMCs.
  • ›Target this Nodal Body: Petroleum Planning and Analysis Cell (PPAC) – the source of revenue data.
  • ›Target this Legal Point: Special Additional Excise Duty (SAED) levied on motor spirit and high-speed diesel.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which government cell publishes data on petroleum sector revenues, as cited in the article?

Q2Statement-basedHard

Consider the following statements regarding the recent excise duty cut on fuel:

1. The Central government cut excise duty on petrol and diesel by ₹10 per litre each.

2. The daily under-recovery being absorbed by Oil Marketing Companies (OMCs) before the cut was approximately ₹2,400 crore.

3. The total contribution of the petroleum sector to the government exchequer in 2024-25 was ₹7.4 lakh crore, with states receiving a larger share than the centre.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what was the price of India's crude oil basket per barrel on March 24, 2026?

Q4Application/ImpactMedium

What is the primary rationale behind the Indian government imposing an export tax on diesel, as mentioned in the article?

All 25 MCQs ▸
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