Govt increases Excise duty by Rs 2 each on petrol, diesel, No impact on Consumer

The excise duty on petrol has now been increased to Rs 13 and to Rs 10 on diesel

New Delhi: The government has increased the excise duty on petrol and diesel by Rs 2 each amid a sharp fall in global oil prices. The excise duty on petrol has now been increased to Rs 13 and to Rs 10 on diesel.

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

According to the latest notification by the Department of Revenue, Ministry of Finance, the change will come into force on 8th April, 2025.

However, there will be no burden on the common man as the Ministry of Petroleum and Natural Gas has informed the PSU Oil Marketing Companies (OMCs) that there will be no increase in retail prices of petrol and diesel.

The government in December 2024 also scrapped the old windfall profit tax on domestically-produced crude oil and on export of jet fuel (ATF), diesel and petrol following a decline in international oil prices.

India first imposed windfall profit taxes on July 1, 2022 joining a growing number of nations that tax super normal profits of energy companies.

Harshraj Aggarwal, Executive vice president, Yes Securities, noted that the excise duty hike on petrol and diesel was on our expected lines given crude correction. The marketing margins which had crossed Rs10/ltr gave the government some confidence on this decision.

“The LPG burden would also come down on current crude price levels. At these crude prices there would inventory losses on both refining and marketing for the OMCs. We still believe that if there are any positive changes on tariff revisions, the crude prices will pull back from current levels and reduce the marketing margins further, we continue to build-in a Rs 3/ltr marketing margins in our estimates,” he added.