India has lowered the special additional excise duty on petrol to Rs 3 per litre and eliminated it on diesel, as per a government order issued on Thursday, which immediately replaces the previous levy structure.

According to the most recent update, the tax on petrol has been lowered to Rs 3 per litre from previous higher rates, while diesel has had the levy entirely eliminated. Earlier, the tax was set at Rs 13 per litre for petrol and Rs 10 per litre for diesel, indicating a decrease of Rs 10 per litre for both, as per earlier government announcements.

The notification modifies the current excise framework to replace the duty rates, significantly reducing the tax load on petrol and removing it entirely on diesel, while making clear that the new rates will not apply to fuel intended for export.

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"To mitigate the substantial losses of oil corporations, the government has significantly impacted its tax revenues (around 24 Rs/litre for petrol and 30 Rs/litre for diesel) amid soaring international prices," Petroleum and Natural Gas Minister Hardeep Puri stated on X.

Additionally, the government has amended the duty framework on aviation turbine fuel (ATF) via multiple distinct notifications, including one that enforces a special additional excise duty of Rs 50 per litre, along with other measures that provide exemptions or modify charges under various systems.

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The alterations are part of a wider array of adjustments to the central excise system announced on March 26, 2026, and come after the earlier modification made in April 2025, when the Centre increased duties on petrol and diesel by Rs 2 per litre.

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The action occurs in the context of increased instability in domestic fuel prices, as global crude markets are disrupted by the conflict in West Asia and its effects on supply chains.