Union Government Hikes Excise Duty by ₹2 on Petrol and Diesel, Retail Prices Unchanged

The central government has raised the excise duty on petrol and diesel by ₹2 per litre, effective from April 8, according to a notification from the Ministry of Finance. This hike comes amid fluctuating global oil prices, which are expected to affect fuel prices across India.

The excise duty on petrol has been increased to ₹13 per litre, while diesel’s excise duty has been raised to ₹10 per litre. With the hike in excise duty, many expected retail fuel prices to rise. However, the Ministry of Petroleum and Natural Gas has clarified that the retail prices of petrol and diesel will not change despite the increase in excise duties.

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

In a statement, the Ministry assured consumers that Public Sector Oil Marketing Companies (PSUs) have confirmed that fuel prices at the pump will remain unaffected by the duty hike. This move aims to prevent any immediate impact on consumers, despite the ongoing volatility in global oil markets.

So, while the excise duty has increased, drivers and consumers will not see a rise in petrol or diesel prices for now, thanks to the government's intervention.