New Delhi: Government of India increased the excise duty on Petrol and Diesel. This was announced through notification from the Ministry of Finance and will come into effect on April 8, 2025. The central government has increased the excise duty on petrol and diesel by Rs 2 per liter. However, half an hour later it was also clarified that this will not increase the prices of petrol and diesel. Petroleum companies will bear this expense. Specifically, the excise duty on Petrol was raised to Rs. 13 per litre and for diesel, it was raised to Rs. 10 per litre.
Normally, such increase in Excise duty often result in an increase in retail fuel prices. However, the Ministry of Petroleum and Natrural Gas quickly clarified that despite the excise duty hike, the retail prices of Petrol and Diesel will remain unchanged.
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
This reassures consumers that the immediate impact of the duty hike will not be felt at the fuel pumps. This move is seen as an effort to maintain stability in fuel prices amidst global economic challenges and fluctuating oil prices.
The price of petrol and diesel mainly depends on 4 things
- crude oil price
- value of us dollar against rupee
- Taxes levied by the central and state governments
- Fuel demand in the country