In a key fiscal move, the Government of India has officially increased excise duty by ₹2 per litre on both petrol and diesel, according to Notification No. 02/2025-Central Excise issued by the Department of Revenue, Ministry of Finance on April 7, 2025. The revised duties—₹13 per litre on petrol and ₹10 per litre on diesel—will come into effect from April 8, 2025.
The hike comes at a time when global crude oil prices are witnessing a sharp decline, driven by heightened trade tensions following U.S. President Donald Trump’s recent tariff announcements. Even though oil itself has been excluded from the tariff list, fears of a global economic slowdown have pressured energy markets.
On Monday, Brent crude fell over 3.5% to $63.30 per barrel, while WTI crude dropped to $59.79, extending last week’s decline of nearly $10.
The slump rippled through equity markets, hammering oil-linked stocks:
- Reliance Industries fell 4.6%
- ONGC dropped 4.4%
- Indian Oil Corporation (IOC) declined 6.1%
These upstream oil producers are especially vulnerable to falling crude prices, as their revenue and profitability are directly linked to global oil benchmarks.
Meanwhile, oil marketing companies (OMCs) traded mixed:
- BPCL rose 0.21%
- IOC fell 2.38%
- HPCL was down 2.04%
Related sectors such as aviation, paints, and tyres also faced pressure amid the broader market selloff. As of midday, the BSE Sensex was down 4.37%, trading at 72,069.94.
The timing of the excise duty increase has raised eyebrows, especially as falling crude prices might have provided some relief to consumers. However, the government appears focused on strengthening fiscal inflows amid global market uncertainty.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Market conditions are volatile. Always conduct your own research or consult a financial advisor before making investment decisions.
