Govt Increases Excise Duty on Petrol, Diesel by ₹2/Litre
Govt Increases Excise Duty on Petrol, Diesel by ₹2/Litre
Petrol, Diesel Excise Duty Hiked by ₹2/Litre; Retail Prices to Remain Unchanged
The Indian government has increased excise duty on petrol to ₹13/litre and diesel to ₹10/litre, effective April 8. However, retail fuel prices will not be impacted, confirms the Petroleum Ministry.
The Government of India has announced an increase in excise duty on petrol and diesel by ₹2 per litre each, as per a gazette notification issued by the Department of Revenue, Ministry of Finance. The revised rates—₹13 per litre for petrol and ₹10 per litre for diesel—will come into effect from April 8, 2025.
Despite the hike in duty, the Ministry of Petroleum and Natural Gas has clarified that retail prices of petrol and diesel will remain unchanged, ensuring no additional financial burden on consumers. “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 on X.
This increase in excise duty is expected to impact the marketing margins of oil marketing companies (OMCs) such as Indian Oil, BPCL, and HPCL, as they are likely to absorb the additional cost. According to industry estimates, their marketing margin could reduce by ₹2 per litre, although it currently remains over ₹11 per litre.
The order cites Section 5A of the Central Excise Act, 1944 and Section 147 of the Finance Act, 2002, stating that the revised duty rates are imposed in public interest.
Previously in December 2024, the government had scrapped the windfall tax on domestic crude and exports amid declining global oil prices.
