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Govt Raises Excise Duty on Petrol, Diesel by ₹2/Litre; Consumers Spared
The government on Monday announced a ₹2 per litre increase in excise duty on petrol and diesel, effective April 8, 2025. The move comes amid volatile global oil prices and renewed U.S. tariffs under former President Donald Trump, which have impacted international markets. The hike is expected to enhance the Centre’s revenue collection.
Despite the increase, the Oil Ministry clarified that retail prices will remain unaffected. The higher duty will be offset by recent reductions in fuel prices, thanks to a drop in global crude oil rates.
Following the announcement, shares of major oil marketing companies (OMCs) took a hit on the Bombay Stock Exchange. Reliance Industries fell 2.80% to ₹1170.95, Indian Oil slipped 1.65% to ₹128, Hindustan Petroleum declined 2.75% to ₹348.20, and Bharat Petroleum dipped 1.34% to ₹275.65.
Global crude oil benchmarks hit their lowest levels since April 2021. Brent crude futures dropped by $2.23 (3.4%) to $63.35 per barrel, while U.S. West Texas Intermediate (WTI) fell by $2.22 (3.58%) to $59.77. Over the past week, Brent and WTI saw declines of 10.9% and 10.6%, respectively.
In India, the last fuel price cut occurred on March 14, just ahead of the Lok Sabha elections, ending a prolonged freeze that began on May 22, 2022. This freeze followed two rounds of excise duty cuts, which had brought down petrol and diesel duties by ₹13 and ₹16 per litre, respectively.
Oil Minister Hardeep Singh Puri recently expressed hope for further reductions in fuel prices, provided international crude remains at current low levels.
Political Backlash
The excise duty hike drew sharp criticism from the Congress party. Leader Mallikarjun Kharge accused the Modi government of burdening citizens despite a 41% fall in crude oil prices since May 2014. He slammed the administration for not passing on the benefits to the public and called out their silence on the massive stock market decline that wiped out ₹19 lakh crore in investor wealth. Kharge blamed the crash on the government’s “Kumbhakarani sleep” regarding tariff policies.
Also Read: Markets Plunge as Trump Tariffs Cause ₹20 Lakh Crore Loss in Just 10 Seconds
