The Crossbill News Desk
In a move that comes amid a sharp decline in global crude oil prices, the Union government has raised the excise duty on petrol and diesel by Rs 2 per litre.
Following the revision, excise duty on petrol now stands at Rs 13 per litre, while diesel is taxed at Rs 10 per litre. The changes, notified by the Department of Revenue under the Ministry of Finance, will take effect from April 8.
Despite the hike in excise duty, the Ministry of Petroleum and Natural Gas has assured that retail fuel prices will remain unchanged.
"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 posted on its official X account.
The revision in duties comes at a time when international oil markets are reeling from concerns over a potential global recession, triggered by rising tariffs and economic uncertainties. Fears that reduced economic activity could dent demand for oil have led to a significant drop in prices across global markets.
The Union government has also announced a hike of Rs 50 in the price of domestic LPG cylinders.
The new LPG rates will raise the price for Ujjwala scheme beneficiaries from Rs 500 to Rs 550 and for non-Ujjwala users from Rs 803 to Rs 853, Union Petroleum Minister Hardeep Singh Puri said on Monday.
Minister Puri said that the excise hike is not aimed at burdening fuel consumers but at compensating oil marketing companies for losses. He stated that the companies had incurred a loss of Rs 41,338 crore due to the subsidised pricing of LPG, and the duty adjustment is intended to offset that shortfall.
Following the revision, excise duty on petrol now stands at Rs 13 per litre, while diesel is taxed at Rs 10 per litre. The changes, notified by the Department of Revenue under the Ministry of Finance, will take effect from April 8.
Despite the hike in excise duty, the Ministry of Petroleum and Natural Gas has assured that retail fuel prices will remain unchanged.
"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 posted on its official X account.
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
The revision in duties comes at a time when international oil markets are reeling from concerns over a potential global recession, triggered by rising tariffs and economic uncertainties. Fears that reduced economic activity could dent demand for oil have led to a significant drop in prices across global markets.
The Union government has also announced a hike of Rs 50 in the price of domestic LPG cylinders.
The new LPG rates will raise the price for Ujjwala scheme beneficiaries from Rs 500 to Rs 550 and for non-Ujjwala users from Rs 803 to Rs 853, Union Petroleum Minister Hardeep Singh Puri said on Monday.
Minister Puri said that the excise hike is not aimed at burdening fuel consumers but at compensating oil marketing companies for losses. He stated that the companies had incurred a loss of Rs 41,338 crore due to the subsidised pricing of LPG, and the duty adjustment is intended to offset that shortfall.
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