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India hikes excise duty on petrol and diesel
The excise duty on petrol and diesel was increased by ₹2 per litre each, effective April 8, 2025. The new rates are ₹13 per litre for petrol and ₹10 per litre for diesel, up from ₹11 and ₹8 per litre, respectively, according to the Ministry of Petroleum and Natural Gas website.
No, the retail prices of petrol and diesel are not expected to rise immediately, as the Ministry of Petroleum and Natural Gas has stated that public sector oil marketing companies (OMCs) will absorb the hike, offsetting it against a potential reduction in retail prices due to lower international oil prices, as reported by CNBC-TV18. In fact, Oil Minister Hardeep Singh Puri even said that retail fuel relief is likely if international crude oil prices drop below $65 per barrel.
Who receives the revenue from this excise duty hike?
The revenue from the excise duty hike goes to the central government and is collected by the Department of Revenue under the Ministry of Finance. It contributes to the national exchequer, funding various public expenditures such as infrastructure, healthcare, and subsidies.
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