The Indian government has raised excise duty on petrol and diesel by Rs 2 per litre effective April 8, 2025, but retail prices will remain unchanged. The duty increase aligns with a decrease in international oil prices, reflecting historical government practices in response to market fluctuations. Current prices for petrol and diesel in Delhi are Rs 94.77 and Rs 87.67, respectively.

The Indian government has announced an increase in excise duty on petrol and diesel by Rs 2 per litre; however, retail prices will not be affected. This adjustment is due to a decrease in international oil prices, allowing the duty hike to offset the necessary price reduction. The excise duty on petrol will rise to Rs 13 while diesel will increase to Rs 10 per litre, starting from April 8, 2025.

This decision comes amidst a significant decline in international oil prices, which have dropped to their lowest since April 2021, primarily due to escalating trade tensions between the United States and China that have raised concerns about a potential recession affecting oil demand. On a recent Monday, Brent crude futures decreased by USD 2.43 to USD 63.15 per barrel, while US West Texas Intermediate crude fell by USD 2.42 to USD 59.57.

India’s oil dependency is notably high, with around 85 percent of its oil consumption reliant on imports. According to a tweet from the Ministry of Petroleum and Natural Gas, state-owned oil marketing companies have confirmed that there will be no increase in retail prices following the excise duty hike.

Historically, the Indian government, under Prime Minister Narendra Modi, has frequently adjusted excise duties in response to fluctuating global oil prices. From November 2014 to January 2016, there were nine excise duty increases, which significantly enhanced government revenues from Rs 99,000 crore in 2014-15 to Rs 2,42,000 crore in 2016-17. After temporary reductions in excise duties, subsequent increases were implemented in July 2019 and March 2020.

Currently, petrol is priced at Rs 94.77 per litre and diesel at Rs 87.67 per litre in Delhi. This recent hike in excise duty will not lead to increased consumer prices, as adjustments will be made due to the ongoing decrease in global oil prices, allowing consumers to maintain stability in their costs.

The Indian government has enacted a Rs 2 per litre hike in excise duty on petrol and diesel, effective April 8, 2025. Despite this increase, consumers will not experience a rise in retail prices due to adjustments related to falling international oil prices. This move reflects the government’s historical pattern of modifying excise duties in response to market conditions, ensuring ongoing economic stability while balancing import dependencies.

Original Source: www.ndtv.com

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