Petrol and diesel are likely to get costlier soon, as the government has increased excise duty on both fuels by Rs 2 per litre. Interestingly, this decision comes even as global crude prices are sliding due to growing concerns over a potential global trade war triggered by US tariffs.
For everyday consumers already battling rising costs, this hike could add more pressure to their monthly budgets.
While the government’s move may help boost its revenue, the timing has raised eyebrows—especially with uncertainty over Donald Trump’s tariff moves. Higher fuel prices could hit household budgets harder and push up the cost of transport and everyday goods.
According to the Finance Ministry’s latest notice, the new excise duty rates will come into effect from April 8, 2025.
The Petroleum and Natural Gas Ministry said, “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.”
In December 2024, the government scrapped the windfall tax on domestically produced crude oil and fuel exports due to a drop in global oil prices.
