New Delhi | April 7, 2025 — In a late-evening move that stirred markets and fuel policy watchers alike, the Central Government hiked excise duty on petrol and diesel by ₹2 per litre. While this technically increases the total excise duty to ₹13 on petrol and ₹10 on diesel, the Ministry of Petroleum has assured that retail prices will not go up immediately.
🚨 What’s the Government Doing?
As per a Revenue Department notification, the new duty will be applicable from April 8, 2025, across India.
| Fuel Type | Previous Excise Duty | New Excise Duty |
|---|---|---|
| Petrol | ₹11/litre | ₹13/litre |
| Diesel | ₹8/litre | ₹10/litre |
Despite this increase, oil marketing companies (OMCs) have been directed not to pass the burden on to consumers, for now.
💬 Minister Puri’s Statement
Union Petroleum Minister Hardeep Singh Puri tried to cool concerns:
“Yes, the excise duty has gone up by ₹2/litre. But consumers won’t bear the brunt. The price hike will help offset the ₹43,000 crore loss that OMCs have been carrying.”
He also cited the falling international crude oil prices, currently around $60/barrel, and clarified that OMCs maintain a rolling 45-day stock — much of which was procured at $75–83/barrel, explaining why immediate retail adjustments are unlikely.
🔍 So, Will Petrol and Diesel Prices Rise?
📌 Short-term: No change expected in retail prices, as per the official statement.
📌 Medium-term: Once OMCs exhaust their high-cost inventory, fuel prices may fall, if global oil prices stay low.
🏷️ Current Fuel Prices (April 7, 2025)
| City | Petrol Price (₹/litre) | Diesel Price (₹/litre) |
|---|---|---|
| Delhi | ₹94.72 | ₹87.62 |
| Mumbai | ₹104.21 | ₹92.15 |
💸 Why It Matters
This excise hike is significant because:
It helps the Centre boost revenue without raising retail prices.
It aims to balance losses faced by OMCs amid global oil market volatility.
It could delay any expected price cuts in petrol and diesel.
