Petrol, Diesel Excise Hiked—Consumers Spared Price Hike

New Delhi, April 7: The Government of India has increased the excise duty on petrol and diesel by ₹2 per litre each, according to a gazette notification issued by the Department of Revenue under the Ministry of Finance. The revised excise duty—₹13 per litre on petrol and ₹10 per litre on diesel—will come into effect from April 8, 2025.

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

Despite the hike in duties, the Ministry of Petroleum and Natural Gas has assured that retail prices of petrol and diesel will not be impacted. In a statement posted on social media platform X, the ministry confirmed that Public Sector Undertaking (PSU) Oil Marketing Companies (OMCs) have decided to absorb the additional cost without passing it on to consumers. “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,” the ministry stated.

The decision is expected to affect the marketing margins of major OMCs such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL). Industry analysts estimate that the marketing margins for these companies could shrink by ₹2 per litre, although current margins are still over ₹11 per litre.

Central Government raises excise duty by Rs 2 each on petrol and diesel: Department of Revenue notification pic.twitter.com/WjOiv1E9ch

— ANI (@ANI) April 7, 2025

The excise duty revision has been implemented under Section 5A of the Central Excise Act, 1944, and Section 147 of the Finance Act, 2002. The government has cited public interest as the basis for the hike.

This move comes months after the Centre scrapped the windfall tax on domestically produced crude oil and petroleum product exports in December 2024, amid declining global oil prices.

While the latest duty increase aims to enhance government revenue, the decision to maintain stable retail fuel prices reflects a strategic balance between fiscal needs and consumer relief.