New Delhi (National Times): In a notable fiscal move, the central government has increased the excise duty on petrol and diesel by Rs 2 per litre each, even as global crude prices hit a four-year low.
The hike comes at a time when Brent crude oil has dipped below $55 per barrel, driven by a slowdown in global demand and oversupply concerns.
According to a notification issued by the Department of Revenue, Ministry of Finance, the revised excise rates will come into effect from April 8, 2025.
Despite the duty increase, the retail prices of petrol and diesel will remain unchanged, the Centre has clarified. In a post on X (formerly Twitter), the Ministry of Petroleum & Natural Gas stated: “PSU Oil Marketing Companies have informed that there will be no increase in retail prices of Petrol and Diesel, after the increase effected in Excise Duty Rates today.”
This move allows the government to bolster its revenues without immediately affecting consumers at the pump, thanks to the cushion provided by declining global oil prices.
The last revision in excise duty occurred in 2023 when rates were adjusted upward amid a global oil price surge caused by geopolitical tensions. The current hike, in contrast, capitalizes on falling crude prices to strengthen the exchequer without consumer-level price shocks.
