India hikes excise duty by ₹2 each on petrol and diesel; No change in retail prices

The Indian government on Monday, April 7, announced a ₹2 per litre increase in Special Additional Excise Duty (SAED)  on both petrol and diesel, effective April 8.

With this revision, SAED on petrol will rise from ₹11 to ₹13 per litre, and on diesel from ₹8 to ₹10 per litre.

The Ministry of Petroleum and Natural Gas has clarified that retail prices of petrol and diesel will remain unchanged despite the ₹2 hike in excise duty.

PSU Oil Marketing Companies have informed that there will be no increase in retail prices of #Petrol and #Diesel, subsequent to the increase effected in Excise Duty Rates today.#MoPNG

— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) April 7, 2025

In a follow-up press conference, Petroleum Minister Hardeep Singh Puri clarified that the recent hike in excise duty on petrol and diesel will not be passed on to consumers. “Let me clarify upfront and on the record — this will not be passed on to the consumer,” he said, addressing concerns around potential retail price hikes.

Puri noted that international crude prices have dropped to around $60 per barrel. However, state-run oil marketing companies (OMCs) are currently carrying inventory priced at an average of $75 per barrel, as they typically hold stock for over 45 days.

“If crude stabilises in the vicinity of $60- $65, OMCs will have the headroom to look at price,” he added.

Also read: Cooking gas price increased by ₹50 per cylinder, says Oil minister Hardeep Singh Puri

The move comes at a time when global crude oil prices are witnessing a sustained downward trend.

The recent slump in global crude prices has been attributed to a mix of rising supply from non-OPEC producers and weakening demand, exacerbated by trade tensions following the imposition of tariffs by US President Donald Trump.