The government increased excise duty on petrol and diesel by Rs 2 per liter from April 8, 2025. Global crude oil prices have fallen to their lowest levels since April 2021. But consumers will not benefit from lower retail oil prices, but the government is trying to increase its revenue by raising excise duties again.Crude oil prices have fallen after Donald Trump started a global trade war.According to a notification issued by the Revenue Department of the Ministry of Finance, the excise duty on petrol has been increased to Rs 13 per liter and the excise duty on diesel to Rs 10.While it was not clear how and what impact this will have on retail prices, the oil ministry confirmed that it will not affect Indian consumers. The Ministry of Petroleum and Natural Gas posted on X that, “PSU oil marketing companies have informed that there will be no increase in the retail prices of petrol and diesel after the increase in excise duty rates today.However, Anuradha Joshi, Assistant Professor, expressed her opinion on this and said, “It cannot be ruled out that the excise duty will not have an impact on Indian consumers in the future. If this happens, it will directly affect housewives. And the financial planning of the family may be disrupted. If the prices of petrol and diesel increase, then of course the prices of all goods will increase, and inflation will increase. Since the salary graph is not increasing in comparison, it will be difficult for the poorest and middle class to do financial calculations.The Organization of the Petroleum Exporting Countries and its allies, OPEC+, announced a production increase of 411,000 barrels per day in May.PTI, citing industry sources, said that there is little chance of any change in retail prices. It is reported that the increased excise duty is likely to be adjusted to the reduction in petrol and diesel prices due to the fall in international oil prices.The decision comes as the government’s revenue collection is expected to increase due to Trump’s tariffs and the ongoing fluctuations in global oil prices. Oil Minister Hardeep Singh Puri has predicted a further reduction in petrol and diesel prices.On the Mumbai Stock Exchange, shares of major oil marketing companies (OMCs) fell. Reliance Industries closed at Rs 1170.95 (down 2.80%), Hindustan Petroleum at Rs 348.20 (down 2.75%), Indian Oil at Rs 128 (down 1.65%), and Bharat Petroleum at Rs 275.65 (down 1.34%). closed.The last reduction in fuel prices in India took place on March 14, ahead of the Lok Sabha elections. After two cuts in excise duty, excise duty on petrol and diesel was reduced by Rs 13 and Rs 16 per liter, respectively.Congress leader Mallikarjun Kharge has strongly criticized the hike in excise duty on petrol and diesel. He said that even though crude oil prices have come down by 41% since 2014, the government has increased excise duty instead of passing on the benefit to consumers.He has accused the government of being inactive regarding the ongoing fall in the stock market. He has given credit to the government for the loss of Rs 19 lakh crore to investors. He has called the current government a ‘robber government’ on X.
Dr. Anupriya Gaikwad
For True to Life News Pvt. Ltd.