Hyderabad: In a move aimed at bolstering government revenue, the Indian government has announced a Rs 2 per litre increase in excise duty on both petrol and diesel. The revised rates will be implemented starting April 8, 2025, raising the excise duty on petrol to Rs 13 per litre and on diesel to Rs 10 per litre.
Despite this hike, the Ministry of Petroleum and Natural Gas has assured consumers that retail prices will remain unaffected for now, as state-run oil marketing companies have committed to absorbing the additional costs.
This decision comes in response to volatility in global crude oil prices, as the government seeks to cushion the impact of fluctuating energy markets on the national economy. The move is expected to contribute significantly to government coffers, but it has raised concerns about potential cascading effects on transportation and goods prices in the future.
While consumers are temporarily shielded from price increases at the pump, experts warn that sustained pressure on oil marketing companies could lead to eventual adjustments in retail fuel prices. For now, the government emphasizes that the decision is part of its broader fiscal strategy in a challenging global economic environment.
As households already face rising costs of living, including the recent hike in LPG cylinder prices, this development has further fueled debates about the economic impact on the common citizen.
