The Indian government has increased the excise duty on petrol and diesel by ₹2 per litre each, effective from April 8, 2025. However, despite this hike, retail prices of petrol and diesel will remain unchanged, as the increase will be offset by recent reductions in global crude oil prices.
The government aims to enhance its revenue collection amid fluctuating global oil prices and ongoing trade tensions sparked by U.S. tariffs.International crude prices have slumped to their lowest levels since April 2021, driven by fears of a global recession and trade wars.
PSU Oil Marketing Companies have confirmed that there will be no change in retail prices of petrol and diesel, ensuring that consumers are not directly affected by the excise duty hike. The decision reflects the government's strategy to balance revenue needs with consumer interests during a period of economic uncertainty.
The government's decision to raise excise duty without impacting retail prices demonstrates a careful approach to managing fuel costs while securing additional revenue. Global economic conditions continue to evolve, this strategy helps maintain stability in the domestic market.