New Delhi, March 27 -- The Union Government in a gazette notification dated 26 March slashed the special additional excise duty on petrol and diesel, bringing much relief to oil marketing companies amid heightened pressure due to fuel supply risk as a result of the US-Iran war in the Middle East.

In its notification on Thursday, the government said it was slashing the special additional excise duty on petrol from Rs.13 per litre, to Rs.3 per litre. Similarly, the duty on diesel was reduced from Rs.10 per litre to nil.

The duty cuts are effective immediately, the finance ministry said in its notification.

Oil marketing companies in India have been under pressure as retail petrol rate and diesel rate have remained steady even as global c...