New Delhi: The Central government has announced an increase in excise duty on both petrol and diesel by Rs 2 per litre, effective tomorrow, April 8, 2025. An official order released today confirmed the decision, setting the new excise duty on petrol at Rs 13 per litre and on diesel at Rs 10 per litre.
This decision arrives at a peculiar juncture, coinciding with a global dip in crude oil prices. Market analysts attribute this downward trend to growing anxieties about a potential global trade war, fueled by the recent imposition of reciprocal tariffs by the United States administration.
The government’s move to raise excise duty is widely anticipated to offset any potential reduction in petrol and diesel prices that would typically result from the current decline in international oil prices. Consequently, consumers are unlikely to experience the benefit of lower global crude rates at the pump.
The hike in fuel levies is poised to exert further pressure on household finances, particularly at a time when many are already grappling with escalating inflationary pressures across various sectors. Increased transportation costs stemming from higher fuel prices are also expected to have a cascading effect on the prices of essential commodities.
While the government’s objective is likely to bolster its revenue streams, the timing of this excise duty increase has triggered considerable apprehension. The uncertainty surrounding the impact of Donald Trump’s tariffs on global trade adds another layer of concern, as elevated fuel costs could exacerbate financial strains on households and contribute to a broader increase in the cost of living.
The Finance Ministry’s latest notification specifies that the revised excise duty rates will be implemented starting tomorrow, signaling an imminent rise in fuel prices for consumers nationwide.
Read More: Darjeeling MP Raju Bista Hails Government’s Decision to Upgrade NH-717A Highway