Excise Duty on Petrol and Diesel Hiked by Rs 2, no change in retail prices

New Delhi, April 7, 2025: The Finance Ministry has announced an increase in excise duty on petrol and diesel by Rs 2 per litre each, effective from April 8, 2025. The move, notified by the Department of Revenue, comes as part of the government’s ongoing efforts to manage fiscal balances without burdening consumers directly.

Despite the hike, the Ministry of Petroleum and Natural Gas confirmed that Public Sector Undertaking (PSU) Oil Marketing Companies (OMCs) will absorb the additional cost, ensuring that retail fuel prices remain unchanged.

“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 stated via its official X handle.

Currently, petrol and diesel prices in the national capital stand at Rs 94.77 and Rs 87.62 per litre, respectively.

This decision follows a series of past adjustments aimed at stabilizing fuel prices and curbing inflation. The government had previously reduced excise duties in November 2021 and May 2022 amid rising global crude prices. In March 2024, petrol and diesel prices were again lowered by Rs 2 to 3 per litre by OMCs.

Meanwhile, international crude oil prices dipped on Monday, with Brent crude trading at USD 63.23 per barrel—down over 3 percent—after new tariffs were announced by the Trump administration. India, which imports around 85% of its oil requirements, closely tracks global price trends for its fuel policy planning.

Analysts suggest that the government’s decision to shield consumers from this latest hike signals a cautious approach ahead of upcoming fiscal decisions and potential inflationary pressures.