Centre Raises Excise Duty On Petrol And Diesel Amid Global Oil Price Decline

NEW DELHI: In a major decision, the Central government has raised excise duty on petrol and diesel by Rs 2 per litre from April 8, 2025. An official notification issued today confirmed that the new excise duty will be Rs 13 per litre for petrol and Rs 10 per litre for diesel.

This decision coincides with a decline in global crude oil prices, driven by increasing worries about a possible global trade war. Analysts indicate that the recent implementation of reciprocal tariffs by the United States government has played a significant role in this downward shift in oil prices.

The government's decision to raise excise duties is expected to counterbalance any potential decrease in fuel prices that would typically accompany falling international oil rates. As a result, consumers are unlikely to benefit from the current drop in global crude prices at the fuel pump.

The rise in fuel levies is expected to put further pressure on household budgets, especially since most families are already struggling with rising inflation in most sectors. Increased transport costs as a result of higher fuel prices are likely to have a knock-on effect on the cost of basic commodities.

The Finance Ministry's notification regarding the revised excise duty rates indicates an imminent rise in fuel prices for consumers nationwide, raising concerns about the broader implications for the cost of living amid ongoing economic uncertainties.

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