The government on Monday, April 7, announced a Rs 2 per litre increase in excise duty on both petrol and diesel. The change, as per a notification from the Department of Revenue, Ministry of Finance, will take effect on April 8, 2025. This decision comes amid global market turmoil following US President Donald Trump’s announcement of unprecedented tariffs on several imported goods.
Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri says, “The international price of crude came down to around $60 a barrel, but please remember that our oil marketing companies carry inventories over a 45-day period. If you go back to January, the crude price then was $83, which came down subsequently to $75. So the crude inventory that they’re carrying is at $75 on average per barrel…You can legitimately expect prices of petrol and diesel to be moderated by the oil marketing companies in keeping with the global price. In a deregulated sector, you can expect them to accordingly adjust the market retail price.”
Currently, the excise duty on petrol stands at Rs 19.90 per litre, which will rise to Rs 21.90 per litre starting Tuesday. For diesel, the excise duty, which is currently Rs 15.80 per litre, will be increased to Rs 17.80 per litre from April 8. As of now, petrol is being sold at Rs 94.77 per litre and diesel at Rs 87.67 per litre in Delhi.
The excise duty hike is expected to offset the reduction in petrol and diesel prices that was anticipated due to the drop in global oil prices.
In other developments, crude oil futures saw a decline of Rs 134, falling to Rs 5,186 per barrel in futures trade. This drop came as market participants reduced their positions, following weak demand in the global market. On the Multi Commodity Exchange, crude oil for May delivery fell by Rs 134, or 2.52 per cent, to Rs 5,186 per barrel, with 3,582 lots traded.
