The Indian government on Monday announced a ₹2 per litre hike in excise duty on petrol and diesel, raising the total duty to ₹13 on petrol and ₹10 on diesel, as per Notification No. 02/2025-Central Excise issued by the Ministry of Finance. The revised rates will be effective from April 8, 2025.
However, Oil Minister Hardeep Singh Puri has confirmed that this hike will not impact retail prices. Speaking to the media, he said the increase in excise duty will be absorbed against the potential cut in fuel prices that was warranted due to falling international crude oil prices.
Puri added that if crude oil prices hover around $60 per barrel, oil marketing companies (OMCs) may reduce retail prices of petrol and diesel. This suggests a possible relief for consumers in the near term.
As of Monday, Brent crude was trading at $63.30, while WTI crude dropped to $59.79, extending last week’s $10 fall amid global recession fears triggered by the Trump administration’s latest tariffs.
While the excise duty hike boosts government revenues, the move is strategically timed to avoid consumer impact by aligning with global oil price corrections.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Fuel prices and tax rates are subject to government revisions and global market conditions.
