Excise Duty Hiked on Petrol and Diesel

Central Government of India announced an increase in excise duties on petrol and diesel by ₹2 per litre each. According to a notification by the Revenue Department under the Ministry of Finance, the new excise duty on petrol is now ₹13/litre and ₹10/litre on diesel. Despite the duty hike, the Ministry of Petroleum and Natural Gas has confirmed that there will be no change in retail prices, as public sector oil marketing companies (OMCs) will absorb the increase. The change comes against the backdrop of global oil price fluctuations, triggered by the US’s tariff policies and increased output by OPEC+.

Key Highlights of the Announcement

  • Date of Announcement: April 7, 2025
  • Effective Date: April 8, 2025

Hike in Excise Duty

  • Petrol: Increased by ₹2 to ₹13 per litre
  • Diesel: Increased by ₹2 to ₹10 per litre
  • Issuing Authority: Revenue Department, Ministry of Finance

Retail Prices

  • No impact on retail prices as per Ministry of Petroleum
  • OMCs (like IOCL, BPCL, HPCL) to absorb the increase
  • Public Assurance: Ministry confirmed on social media (X) that retail prices will remain stable

Market Context

  • Crude oil prices falling due to global economic tensions
  • Triggered by the US imposing 34% tariffs on US goods, raising fears of a global trade slowdown

OPEC+ Action

  • Planned output increase to 411,000 barrels/day in May 2025
  • Previously planned increase was only 135,000 barrels/day
  • Indicates OPEC+ is expecting future demand despite recent tariff concerns
Summary/Static Details
Why in the news? Excise Duty Hiked on Petrol and Diesel
Excise Duty on Petrol Increased by ₹2 to ₹13/litre
Excise Duty on Diesel Increased by ₹2 to ₹10/litre
Retail Price Impact No change; OMCs will absorb the cost
Government Ministry Ministry of Finance (Revenue Dept.) and Ministry of Petroleum
Announcement Medium Official notification and post on X (formerly Twitter)
Global Crude Trends Prices falling due to US trade war and OPEC+ output hike
OPEC+ Output Plan Increase to 411,000 barrels/day from May 2025
US Tariff Impact 34% tariffs fueling concerns of reduced demand
Shivam

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