“Government Raises Excise Duty on Petrol, Diesel by ₹2 per Litre”
No retail fuel price hike despite excise duty increase; government takes advantage of declining global oil prices.
The government has raised excise duty on petrol and diesel by ₹2 per litre each from April 8, 2025. Retail prices not to be changed despite the increase in the backdrop of declining global oil prices.
New Delhi, April 7:
The government has raised excise duty on petrol and diesel by ₹2 a litre each, as global oil prices fell sharply. According to the latest notification by the Department of Revenue, Ministry of Finance, the new rates will be effective from April 8, 2025.
After the hike, the excise duty on petrol has increased to ₹13 per litre and on diesel to ₹10 per litre. Officials ensured that consumers will not bear any feel at the pump despite the hike. The Ministry of Petroleum and Natural Gas has asked public sector oil marketing companies (OMCs) to keep existing retail prices for petrol and diesel intact.
This action comes against the backdrop of declining global crude oil prices, which have provided the government with the leeway to make adjustments without burdening consumers. In a similar action earlier, the government had abolished the windfall profit tax on domestically-refined crude oil and exports of jet fuel (ATF), diesel, and petrol in December 2024.
India initially rolled out the windfall profit tax on July 1, 2022, joining other countries that wanted to tax the high profits earned by oil companies in the midst of surging global oil prices.
The recent decision is viewed as an effort to increase government revenue without raising fuel prices for consumers.
