Centre hikes excise duty on petrol and diesel by Rs 2/litre each

The Central government, on April 7, hiked excise duty on petrol and diesel by Rs 2 per litre each, according to an official order.

The order stated that the excise duty on petrol was increased to Rs 13 per litre and that on diesel to Rs 10.

The move comes at a time when global crude oil prices are actually on a downward trend, driven by fears of a global trade war sparked by the US administration’s reciprocal tariffs.

The increased excise duty is likely to be adjusted against the cut in petrol and diesel prices that was warranted because of a fall in international oil prices.

This hike is expected to impact consumers already dealing with inflationary pressures.

While the government may be looking to boost revenues, the timing has sparked concerns, especially amid the uncertainty surrounding Donald Trump’s tariffs, as higher fuel costs could further squeeze household budgets and drive up transportation and commodity prices.

As per the latest notification by the Finance Ministry, the said change will come into effect on April 8, 2025.