Budget 2026,27: No Direct Change in Petrol, Diesel or LPG Taxes, GST Tweaks Impact Vehicle Prices
The Union Budget 2026,27, presented by Nirmala Sitharaman on February 1, did not announce any direct changes to central excise duties on petrol, diesel or domestic cooking gas. As a result, retail fuel prices remain largely unchanged and continue to be driven by routine revisions by oil marketing companies.
Current Fuel Prices in Delhi (Feb 1, 2026)
- Petrol: ₹94.72 per litre (unchanged) - Diesel: ₹87.62 per litre (unchanged) - CNG: ₹76 per kg (stable after January cut) - Domestic LPG (14.2 kg): ₹853 (general) / ₹553 (Ujjwala beneficiaries) - Commercial LPG (19 kg): ₹1,740.50 (up ₹49 via monthly revision)
Key GST Change Affecting Vehicles
- Small petrol, diesel, CNG & LPG cars: GST reduced from 28% to 18% - Luxury cars and larger hybrids: GST increased from 28% to 40%
This move is expected to make entry-level cars cheaper, while premium and hybrid vehicles may become costlier.
Clean Energy Push
The Budget also supports energy transition by exempting basic customs duty on select energy-transition equipment and solar glass inputs, encouraging a gradual shift away from fossil fuels.
Bottom Line
While petrol, diesel and domestic LPG taxes remain untouched, the Budget indirectly influences fuel-related expenses through vehicle GST changes and clean-energy incentives. Consumers will see little immediate change at the fuel pump, but car buyers, especially in the small-car segment, could benefit from lower taxes.
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