SRINAGAR: The Central Government on Monday increased the excise duty on petrol and diesel by Rs 2 per litre, raising it to Rs 13 on petrol and Rs 10 on diesel, according to a notification issued by the revenue department of the Ministry of Finance.
The revised rates will come into effect from April 8. The order did not mention any direct impact on retail fuel prices. However, the Ministry of Petroleum and Natural Gas clarified that the hike will not affect consumers.
“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,” the ministry said on X.
The increase comes at a time when global crude oil prices have dropped to their lowest levels since April 2021. The decline follows fresh concerns over reduced demand, triggered by a global trade conflict after the United States imposed 34% tariffs on selected goods.
Additionally, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced it would raise oil output to 411,000 barrels per day in May, up from the previously planned 135,000 barrels.
Despite falling global prices, domestic retail fuel rates will remain unchanged, with the excise hike seen as a move to boost government revenue.
