Government Hikes Fuel Excise Duty by ₹2/Litre – Effective From Tuesday
On Monday, April 7, 2025, the Central Government of India announced a ₹2 per liter rise in excise duty on petrol and diesel, as reported by PTI. The increased excise tax rates are now ₹13/litre for petrol and ₹10/litre for diesel, effective Tuesday, April 8.
No Change in Retail Fuel Prices, Confirms Oil Ministry
Despite the hike in excise duty, the Ministry of Petroleum and Natural Gas clarified that the retail prices of petrol and diesel will remain unchanged. This is because the hike will be offset by reductions in global crude oil prices.
“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 said via a post on X (formerly Twitter).
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
Global Oil Prices Decline – The Real Reason Behind No Consumer Impact
Union Petroleum Minister Hardeep Singh Puri addressed public concerns, stating that the excise duty increase will not burden consumers. He explained that the current fall in international crude oil prices has given oil marketing companies the flexibility to absorb the additional tax.
“The international price of crude fell to around $60 per barrel. But remember, our oil marketing companies carry 45-day inventories. In January, crude was at $83, and it dropped to $75 on average,”
said Puri.
“This gives enough margin to absorb the hike without increasing pump prices.”
Opposition Criticizes Govt’s Move Amid Market Volatility
The announcement triggered a strong reaction from the Congress party, accusing the government of burdening citizens amid stock market uncertainty.
Congress President Mallikarjun Kharge, in a post on X (in Hindi), stated:
“Vaah Modi Ji Vaah!! International crude oil prices have dropped by 41% since May 2014. Instead of passing the benefit to the public, you’ve hiked excise duty by ₹2!”
He further added that after investors lost ₹19 lakh crore in a stock market crash, the excise hike is like rubbing salt into the wounds of ordinary citizens.
Summary: What This Means for You
| Aspect | Details |
| Excise Duty on Petrol | Increased to ₹13/litre |
| Excise Duty on Diesel | Increased to ₹10/litre |
| Effective Date | April 8, 2025 |
| Retail Price Impact | No change expected |
| Reason | Set-off by global oil price decline |
| Govt’s Stand | Boost revenue without hurting consumers |
| Opposition’s View | Accuses govt of mismanagement and burden |