Centre increases excise duty on petrol, diesel by ₹2; retail prices to remain unchanged

The central government has announced an increase in excise duty on petrol and diesel by ₹2 per litre, effective from April 8, 2025, according to an official notification issued by the Ministry of Finance on Monday.

The excise duty on petrol will rise from ₹11 per litre to ₹13 per litre, while the duty on diesel will increase from ₹8 per litre to ₹10 per litre.

Oil marketing companies have reportedly informed the government that there'll be no increase in retail prices of petrol and diesel despite the hike in excise duty.

The Ministry of Petroleum and Natural Gas posted on X: "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."

The assurance from OMCs indicates that public sector oil companies will absorb the duty hike, sparing consumers from an immediate rise in fuel costs.

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri clarified that the excise duty increase on petrol and diesel is not being passed on to consumers, but is instead aimed at offsetting the losses incurred by oil marketing companies.

"That excise increase is intended to compensate the oil marketing companies for ₹43,000 crore that they have incurred as a loss on the gas part of it," he told reporters.

The decision to maintain retail prices comes as a relief amid concerns over potential cost increases for consumers and industries reliant on petrol and diesel.