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The Central government has announced a hike in excise duty on petrol and diesel by ₹2 per litre, effective from Tuesday, April 8, 2025. This revision increases the total excise duty to ₹13 per litre on petrol and ₹10 per litre on diesel, as mentioned in the latest official notification.
Despite the tax hike, the Ministry of Petroleum and Natural Gas has assured the public that the retail prices of petrol and diesel will not be affected. In a post shared on social media platform X (formerly Twitter), the ministry stated, “PSU Oil Marketing Companies have informed that there will be no increase in retail prices of Petrol and Diesel, subsequent to the increase affected in Excise Duty Rates today.”
The decision to raise duties has been taken in the public interest, as per the government order, and is implemented under Section 5A of the Central Excise Act, 1944, and Section 147 of the Finance Act, 2002.
Industry sources, as quoted by PTI, indicated that the excise duty hike is unlikely to impact consumer fuel prices. The increased tax will reportedly be balanced by adjusting it against expected price cuts due to declining international crude oil prices.
The hike in duty comes just months after the government removed the windfall profit tax on domestically produced crude oil and fuel exports in December 2024, citing falling global oil rates as the reason.
The strategic move to increase excise duty without impacting pump prices reflects the government’s efforts to manage fiscal balance while shielding consumers from immediate financial burden.
