Govt hikes excise duty on petrol, diesel; no change in retail prices

The government on Monday hiked excise duty on petrol and diesel by Rs 2 per litre each but there will be no change in retail prices reported the PTIThe hike will be adjusted against the price cut that was warranted because of falling international oil prices according to the PTIThe excise duty on petrol was hiked to Rs 13 per litre and that on diesel to Rs 10 a litre an official order stated on MondayThe increase in duties will come into force on the 8th day of April 2025 it saidPSU 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 todayMoPNGmdash Ministry of Petroleum and Natural Gas MoPNG PetroleumMin April 7 2025While any change in taxes are normally passed on to consumers there will be no change in retail selling price of petrol and diesel as the excise hike will be set off against the reduction in retail prices that was warranted from fall in international oil prices as per the PTIThe international oil prices have slumped to their lowest since April 2021 as escalating trade tensions between the United States of America and China stoked fears of a recession that could cut oil demand the news agency reportedAccording to the PTI Brent futures lost USD 243 or 37 per cent to USD 6315 a barrel on Monday while US West Texas Intermediate crude futures were down USD 242 or 39 per cent at USD 5957India is 85 per cent dependent on imports to meet its oil needsPSU 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 Ministry of Petroleum and Natural Gas said in a post on XThe government during its 11year rule hiked excise duty whenever international oil prices fellThe government had between November 2014 and January 2016 raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting global oil prices as per the PTIIn all duty on petrol rate was hiked Rs 1177 per litre and that on diesel by 1347 a litre in those 15 months that helped governments excise mopup more than double to Rs 242000 crore in 201617 from Rs 99000 crore in 201415The government had cut excise duty by Rs 2 in October 2017 and by Rs 150 a year later But it raised excise duty by Rs 2 per litre in July 2019 It again raised excise duty on March 2020 by Rs 3 per litre eachExcise duty was raised by Rs 13 and Rs 16 per litre on petrol and diesel between March 2020 and May 2020But in the following years it rolled back the Rs 13 and Rs 16 per litre excise duty hike as international oil prices soared the PTI reportedwith PTI inputsatOptionskeyd0ddb8ef8f1a62a8cdd22fac27fc5ea7formatiframeheight90width728params