The Government of India has announced an increase in excise duty on petrol and diesel by ₹2 per litre, according to a notification issued by the Ministry of Finance’s Department of Revenue. The revised duty structure will be effective from April 8, 2025.
Despite the hike, the Ministry of Petroleum and Natural Gas clarified that the move will not impact the prices paid by consumers at fuel stations. In a statement shared on social media platform X (formerly Twitter), the ministry stated that Public Sector Undertaking (PSU) Oil Marketing Companies (OMCs) have confirmed there will be no change in the retail selling prices of petrol and diesel.
“PSU Oil Marketing Companies have informed that there will be no increase in retail prices of #Petrol and #Diesel, subsequent to the increase effected in Excise Duty Rates today,” the ministry posted.
As per the updated tax structure, the excise duty on petrol will now stand at ₹13 per litre, while diesel will carry a duty of ₹10 per litre.
Fuel prices in India have long been influenced by a range of factors, including fluctuations in global crude oil prices, exchange rate variations, and domestic tax policies. The government has come under scrutiny in the past for maintaining high levels of excise duty, even during periods when international oil prices declined.
This latest move is seen as a measure to boost government revenue without placing additional burden on consumers, at least in the short term.
Industry analysts will be closely watching how this decision impacts oil marketing companies and whether retail prices remain stable in the coming weeks.
