The government has lowered special additional excise duties on petrol and diesel in response to the global energy crunch caused by the ongoing US-Israel conflict with Iran and Tehran’s restrictions on shipping through the Strait of Hormuz. Petrol’s excise duty has been cut from Rs 13 per litre to Rs 3, while diesel duty has been reduced from Rs 10 per litre to zero, a move expected to ease fuel prices domestically.
The Strait of Hormuz is a key global energy route, handling roughly a fifth of the world’s seaborne oil and gas—about 20–25 million barrels of crude and nearly 10 billion cubic feet of gas daily. For India, around 40–50% of crude imports, or 2.2–2.8 million barrels per day, traditionally pass through this corridor. The decision follows a recent hike by Nayara Energy, India’s largest private fuel retailer, which increased petrol by Rs 5 per litre and diesel by Rs 3 per litre to offset rising global crude costs.
Despite disruptions at Hormuz, India’s oil ministry confirmed sufficient crude supplies for the next 60 days. Higher imports from over 41 international suppliers, especially from the western hemisphere, have more than offset potential shortfalls. All Indian refineries are operating at over 100% capacity, and crude for the next two months has already been secured, ensuring there is no supply gap.
