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Home » Petrol and Diesel Tax Hike: No Price Rise Expected Despite Rs 2 Excise Duty Increase

Petrol and Diesel Tax Hike: No Price Rise Expected Despite Rs 2 Excise Duty Increase

Itishree Sethy by Itishree Sethy
April 7, 2025
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The Indian government announced an increase in excise duty on petrol and diesel by Rs 2 per litre, effective April 8, 2025.


As a result, the excise duty now stands at Rs 13 per litre for petrol and Rs 10 per litre for diesel. This decision comes in the wake of a sharp decline in international oil prices.

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.#MoPNG

— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) April 7, 2025

Industry sources confirm that retail fuel prices will remain unchanged, as the reduction in global oil prices will offset the increased excise duty. The Ministry of Petroleum and Natural Gas reassured citizens that oil marketing companies have agreed not to raise retail prices.

The government justified the hike as being in the public interest and enforced the changes under provisions of the Central Excise Act, 1944, and the Finance Act, 2002. Despite initial concerns about potential price rises, this measure is expected to generate additional revenue without burdening consumers.

Tags: dieselenergy policyexcise dutyfuel pricesIndian Governmentoil pricespetrolpetroleumpublic interestretail price
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