The government on Monday increased excise duty each on petrol and diesel by Rs 2 per litre, effective April 8, 2025.
The decision comes amid ongoing fluctuations in global oil prices and Trump's tariffs, boosting the Union government's revenue collection.
Although the recent order did not specify how and when it would affect retail prices, the Oil Ministry confirmed that it will not be affecting Indian consumers.
While global crude prices have slumped to lowest levels since April 2021, the consumers will not have the benefit of lower retail oil prices, but the government is making an effort to shore up its revenues with the latest hike in excise duties.
On the Bombay Stock Exchange, shares of major oil marketing companies (OMCs) saw declines, with Reliance Industries closing at Rs 1170.95 (down 2.80%), Indian Oil at Rs 128 (down 1.65%), Hindustan Petroleum at Rs 348.20 (down 2.75%), and Bharat Petroleum at Rs 275.65 (down 1.34%).
Both Brent and WTI crude benchmarks reached their lowest levels since April 2021, with Brent futures falling by $2.23, or 3.4%, to $63.35 a barrel, and U.S. West Texas Intermediate crude futures decreasing by $2.22, or 3.58%, to $59.77. Over the week, Brent and WTI recorded losses of 10.9% and 10.6%, respectively.
In India, the last reduction in fuel prices occurred on March 14, just before the Lok Sabha elections, following a period of price freezes that began on May 22, 2022.
This freeze followed two cuts in excise duty that collectively reduced petrol and diesel excise by Rs 13 and Rs 16 per litre, respectively.
Recently, Oil Minister Hardeep Singh Puri expressed optimism about further cuts in petrol and diesel prices, contingent on global crude prices remaining at their current low levels.
Congress lashes out at Modi & Co
The recent increase in excise duty on petrol and diesel has drawn sharp criticism from Congress leader Mallikarjun Kharge, who accused the government of exploiting the situation despite a significant drop in international crude oil prices.
Kharge pointed out that since May 2014, crude oil prices have fallen by 41%, yet the government has chosen to raise excise duties instead of passing on the benefits to consumers.
He expressed outrage over the government's inaction regarding the stock market's plummet, where investors lost Rs 19 lakh crore, attributing it to what he described as the government's "Kumbhakarani sleep" on tariff policy.
The decision comes amid ongoing fluctuations in global oil prices and Trump's tariffs, boosting the Union government's revenue collection.
Although the recent order did not specify how and when it would affect retail prices, the Oil Ministry confirmed that it will not be affecting Indian consumers.
While global crude prices have slumped to lowest levels since April 2021, the consumers will not have the benefit of lower retail oil prices, but the government is making an effort to shore up its revenues with the latest hike in excise duties.
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.#MoPNG
— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) April 7, 2025
On the Bombay Stock Exchange, shares of major oil marketing companies (OMCs) saw declines, with Reliance Industries closing at Rs 1170.95 (down 2.80%), Indian Oil at Rs 128 (down 1.65%), Hindustan Petroleum at Rs 348.20 (down 2.75%), and Bharat Petroleum at Rs 275.65 (down 1.34%).
Both Brent and WTI crude benchmarks reached their lowest levels since April 2021, with Brent futures falling by $2.23, or 3.4%, to $63.35 a barrel, and U.S. West Texas Intermediate crude futures decreasing by $2.22, or 3.58%, to $59.77. Over the week, Brent and WTI recorded losses of 10.9% and 10.6%, respectively.
In India, the last reduction in fuel prices occurred on March 14, just before the Lok Sabha elections, following a period of price freezes that began on May 22, 2022.
This freeze followed two cuts in excise duty that collectively reduced petrol and diesel excise by Rs 13 and Rs 16 per litre, respectively.
Recently, Oil Minister Hardeep Singh Puri expressed optimism about further cuts in petrol and diesel prices, contingent on global crude prices remaining at their current low levels.
Congress lashes out at Modi & Co
The recent increase in excise duty on petrol and diesel has drawn sharp criticism from Congress leader Mallikarjun Kharge, who accused the government of exploiting the situation despite a significant drop in international crude oil prices.
Kharge pointed out that since May 2014, crude oil prices have fallen by 41%, yet the government has chosen to raise excise duties instead of passing on the benefits to consumers.
He expressed outrage over the government's inaction regarding the stock market's plummet, where investors lost Rs 19 lakh crore, attributing it to what he described as the government's "Kumbhakarani sleep" on tariff policy.
वाह मोदी जी वाह !!
— Mallikarjun Kharge (@kharge) April 7, 2025
मई 2014 के मुक़ाबले अंतर्राष्ट्रीय कच्चे तेल की क़ीमत में 41% की गिरावट आई है, पर आपकी लुटेरी सरकार ने पेट्रोल-डीज़ल के दाम कम करने के बजाय, ₹2-₹2 Central Excise Duty बढ़ा दी है
टैरिफ़ नीति पर कुंभकर्णी नींद से शेयर बाज़ार में छोटे-बड़े निवेशकों का एक…
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