The government has revised excise duties on petrol and diesel, but there’s good news for consumers.
According to Indian Oil Corporation, retail prices of petrol, diesel, and domestic LPG will remain unchanged despite the new changes.
This means you won’t see any immediate increase at fuel pumps.
What Has Changed in Fuel Duties?
The Ministry of Finance has updated excise duty rates effective May 1, 2026.
Petrol excise duty: ₹23 per litre
Diesel excise duty: ₹33 per litre
The government has also reduced the additional excise duty on petrol to zero.
These changes are part of ongoing adjustments under existing tax laws.
It’s also the second revision in just one month.
Why Prices Are Still Stable
Even though duties have been revised, fuel prices for consumers remain steady.
This is because oil companies are absorbing the impact of rising global crude oil prices.
Around 90% of fuel consumption in India comes from regular consumers, so keeping prices stable helps avoid financial pressure on households.
Prices of domestic LPG, kerosene under PDS, and fuel for domestic airlines have also not changed.
Most Fuel Products See No Price Change
The majority of petroleum products remain unaffected.
About 80% of fuel products have no change in price.
Around 4% have become cheaper, while 16%—mostly used in industrial and commercial sectors—have become more expensive.
This shows that price changes are limited and targeted, rather than affecting everyone.
Global Factors Behind the Move
Fuel pricing in India depends heavily on global crude oil trends.
Recently, prices have surged due to tensions in West Asia, with crude oil touching around $126 per barrel.
However, retail fuel prices are influenced by multiple factors like base price, taxes, and dealer commissions.
That’s why changes in duty don’t always directly affect pump prices.
Changes in Export and Commercial Fuel Prices
There have also been updates in export duties.
Diesel export duty: ₹23 per litre
ATF export duty: ₹33 per litre
Petrol export duty: No change
At the same time, commercial LPG cylinders have become costlier.
In Delhi, a 19-kg commercial LPG cylinder now costs ₹3,071.50, while prices have also increased in cities like Mumbai and Kolkata.
A Balanced Approach to Pricing
Overall, the government is trying to balance global price pressures with domestic stability.
By keeping everyday fuel prices unchanged and adjusting only specific segments like industrial fuels and exports, authorities aim to protect consumers while staying aligned with global markets.
For now, this means relief for the common user—even as global oil prices remain high.
