Modi government increases excise duty on petrol, diesel by ₹2/liter
What's the story
The Indian government has hiked the excise duty on petrol and diesel by ₹2 per liter, owing to fluctuations in global oil prices.
The Oil Ministry has clarified that consumers will remain unaffected by this move.
The hike in excise duty is likely to be offset by the recent reductions in petrol and diesel prices, driven by a fall in global crude oil rates.
The move is expected to boost the Union government's revenue collection.
Market response
Shares of oil marketing companies close in red following announcement
After the excise duty hike was announced, shares of leading oil marketing companies (OMCs) fell.
On the Bombay Stock Exchange, Reliance Industries closed at ₹1,170.95 (down 2.80%), Indian Oil at ₹128 (down 1.65%), Hindustan Petroleum at ₹348.20 (down 2.75%), and Bharat Petroleum at ₹275.65 (down 1.34%).
Meanwhile, both Brent and WTI crude benchmarks hit their lowest since April 2021.
Brent futures fell by 3.4% to $63.35/barrel and US West Texas Intermediate crude futures fell by 3.58% to $59.77/barrel.
Price trends
Recent fuel price reductions and future expectations
The last fuel price cut in India was on March 14, 2024, ahead of the Lok Sabha elections.
This was preceded by a freeze in prices since May 22, 2022 after two excise duty cuts reduced petrol and diesel excise by ₹13 and ₹16 per liter, respectively.
Recently, Oil Minister Hardeep Singh Puri had expressed hope of further petrol and diesel price cuts if global crude prices remain low.
Twitter Post
INC slams Modi government for not decreasing fuel prices
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…