Petrol, Diesel Excise Duty Hiked by ₹2 Per Litre; Will It Increase Fuel Prices?
In a move that could have a significant impact on fuel pricing dynamics, the Central government on Monday (April 7, 2025) announced a hike in excise duty on both petrol and diesel by ₹2 per litre. However, despite the increase, there will be no immediate change in the prices that consumers pay at petrol pumps.
According to the official order, the excise duty on petrol has now risen to ₹13 per litre, while that on diesel has gone up to ₹10 per litre.
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
Why Your Petrol & Diesel Prices Won’t Rise — For Now
Interestingly, the government clarified that retail prices of petrol and diesel will remain unchanged for the time being. This is largely because the increase in excise duty is expected to offset the reduction in fuel prices that would have naturally occurred due to falling international crude oil prices.
In simple terms, while global oil rates have dipped, instead of passing the entire benefit to the consumers, the government has chosen to raise excise duty — essentially using this opportunity to boost its revenue without increasing the prices at the pump.
This strategy has been used in the past as well, allowing the government to manage its fiscal position while keeping fuel prices stable for consumers.
