The Indian government raised the excise duty on petrol and diesel by Rs 2 per litre on Monday. This change will start on Tuesday. The excise duty on petrol has been increased to Rs 13 per litre, and on diesel, it is now Rs 10 per litre.
Although the order did not mention how this would affect retail prices, sources told PTI that the prices at fuel stations are not likely to change. The higher excise duty might be adjusted with the recent drop in petrol and diesel prices due to lower international oil prices.
The ministry of petroleum and natural gas posted on X, “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 government has said that the increase in excise duty has been done in the public’s interest, based on laws from the Central Excise Act, 1944, and the Finance Act, 2002. In December 2024, the government also removed the tax on windfall profits from locally produced oil and fuel exports because global oil prices had dropped.
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