Govt Hikes Excise Duty On Petrol, Diesel By Rs 2 Per Litre, But Will This Impact Customers?

The move comes as the economy deals with the aftermath of US President Donald Trump's staggering tariffs. Global developments have also resulted in major fluctuations in oil prices.

By : ABP Live Business | Updated at : 07 Apr 2025 04:06 PM (IST)

The authorities have clarified that this decision will not impact the wallets of customers. 
Source : Freepik

Indian government on Monday hiked the excise duty on petrol and diesel. The authorities increased the duty on both petrol and diesel by Rs 2 per litre. The announcement was made by the Finance Ministry on Monday via an official notification. 

The move comes as the economy deals with the aftermath of US President Donald Trump's staggering tariffs. Global developments have also resulted in major fluctuations in oil prices. Further, the revision in the duties will come into effect on April 8, 2025. 

Will Petrol, Diesel Become Costlier Now?

However, the authorities have clarified that this decision will not impact the wallets of customers.

While the latest directive didn’t clarify the exact timeline or mechanism for any retail price impact, the Oil Ministry has assured that Indian consumers will remain unaffected. The rise in excise duty is likely to be offset by the recent reduction in petrol and diesel prices, driven by falling global crude oil rates.

In a post on social media platform X, the Ministry of Petroleum and Natural Gas clarified that it will not be passing on the increase in duties on the fuels to the public. "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 post said.

In India, fuel prices were last lowered on March 14—just ahead of the Lok Sabha elections—after remaining unchanged since May 22, 2022. That prolonged freeze followed two excise duty reductions, which together slashed the tax on petrol by Rs 13 per litre and on diesel by Rs 16 per litre, reported The Economic Times.

Oil Minister Hardeep Singh Puri recently voiced confidence that fuel prices could be trimmed further, provided international crude prices stay at their current subdued levels.

Also Read : All Eyes On RBI MPC, Panel To Reveal Decision On Key Rates On April 9

Published at : 07 Apr 2025 03:56 PM (IST)
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Diesel Indian Government Diesel Prices Petrol Excise Duty On Petrol Excise Duty On Diesel Petrol Prices Government Hikes Excise Duty

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