New Delhi, March 27 -- India has slashed excise duty on petrol and diesel and imposed a windfall tax on the export of refined diesel and jet fuel to prevent higher pump prices and to ensure sufficient supplies in the domestic market, as the effective closure of the Strait of Hormuz amid the West Asia war disrupts supplies. The net revenue hit from these decisions is expected to be around Rs.5,500 crore every fortnight.

The special additional excise duty on petrol was cut to Rs.3 from Rs.13 a litre, the finance ministry said in a gazette notification on Friday. The duty on diesel was slashed to nil from Rs.10 a litre.

Separately, the government imposed additional duties on the export of diesel at Rs.21.5 a litre and on aviation turbine a...