The Indian government on Monday announced a ₹2 per litre increase in excise duty on both petrol and diesel, raising the total levy to ₹13 per litre on petrol and ₹10 per litre on diesel, as per Notification No. 02/2025-Central Excise issued by the Ministry of Finance. The change will be effective from April 8, 2025.
However, the Oil Ministry has confirmed that this hike will not impact retail prices of petrol and diesel. According to officials, the increased duty will be absorbed by adjusting against the expected price reduction that was due following the recent drop in international crude oil prices.
Brent crude was last seen trading around $63.30, down over 3.5%, while WTI was at $59.79—triggered by fears of a global slowdown amid new trade barriers initiated by the U.S.
As a result, oil marketing companies (OMCs) were expected to reduce pump prices in line with the drop in international oil prices. The increase in excise duty is now likely to neutralize that reduction, thereby keeping retail prices stable for consumers.
This strategy helps the government shore up tax revenues without causing a direct burden on consumers—at least for now.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Fuel prices and taxes are subject to change based on market conditions and government policies.
