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Indian Govt Hikes Excise Duty on Petrol and Diesel by ₹2 Per Litre: Key Details

Indian government raises excise duty on petrol and diesel by ₹2 per litre effective April 8, 2025. No immediate price hike for consumers—details inside.

The Indian government announced a ₹2 per litre hike in excise duty on petrol and diesel on Monday, April 7, 2025. The revised rates will take effect from April 8, 2025, but retail fuel prices are expected to remain unchanged due to adjustments in global oil prices.

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Key Highlights of the Excise Duty Hike

  • New Rates: Petrol excise duty rises to ₹13/litre, diesel to ₹10/litre.
  • Effective Date: April 8, 2025.
  • Consumer Impact: No immediate increase in retail prices due to global oil price adjustments.

Why Did the Govt Raise Excise Duty?

The decision comes amid global oil market volatility and recent geopolitical tensions, including counter-tariff announcements by the Trump administration. Officials stated the hike aims to stabilize revenue streams without burdening consumers.

Will Petrol and Diesel Prices Rise?

Despite the excise duty increase, industry sources confirm retail prices will not spike immediately. The hike is offset by a reduction in fuel prices linked to falling international crude oil rates.

Behind the Adjustment

  • Global Oil Trends: Crude oil prices dropped by 12% over the past month, creating room for duty hikes.
  • Revenue Stability: The move aligns with the government’s strategy to bolster infrastructure and social welfare funds.

What’s Next?

The government clarified that oil marketing companies will absorb the duty hike through price adjustments. Experts warn that future global price surges could impact retail rates, but no changes are expected in the short term.


The excise duty on petrol and diesel has been strategically increased to ₹13/litre and ₹10/litre, respectively, balancing global oil trends and fiscal needs. Consumers can breathe easy—for now—as retail prices remain steady. Stay updated with Munsif for real-time fuel price analysis.

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