NEW DELHI: The Finance Ministry has increased the excise duty on petrol and diesel by Rs 2 each. According to the latest notification from the Department of Revenue, Ministry of Finance, the change will come into effect on 8th April 2025.
However, this is not expected to impact consumers directly, as Oil Marketing Companies (OMCs) are likely to absorb the additional cost.
“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,” said the Petroleum Ministry.
The government has adjusted excise duties on petroleum products several times to control inflation and ease the consumer burden.
In November 2021, the government reduced the excise duty on petrol by Rs 5 per litre and diesel by Rs 10 per litre. In May 2022, excise duties on both petrol and diesel were cut by Rs 8 and Rs 6 per litre, respectively, to ease the financial strain on consumers amid rising fuel prices.
On both occasions, the prices of petrol and diesel decreased. Most recently, in March 2024, petrol and diesel prices were reduced by Rs 2 to 3 per litre across India by oil marketing companies.
The current petrol and diesel prices in Delhi are Rs 94.77 per liter and Rs 87.62 per liter, respectively.
Meanwhile, following the Trump administration’s announcement of tariffs on several countries, global crude oil prices continued their downward trend on Monday, with Brent crude trading at USD 63.23 per barrel in the early afternoon (India time), a decline of over 3 per cent.
India is 85 per cent dependent on imports to meet its oil needs.
"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 Oil Ministry said in a post on X.
The Modi government, during its 11-year rule, hiked excise duty whenever international oil prices fell.
(With inputs from PTI)
