Petrol and Diesel to Cost ₹2 More per Litre from Midnight as Govt Hikes Excise Duty
New Delhi, April 7 In a move that will impact commuters and transporters alike, the Government of India has increased the excise duty on petrol and diesel by ₹2 per litre, effective from midnight, April 8. This means consumers will now pay ₹2 more per litre for both petrol and diesel across the country.
Currently, in Delhi, petrol retails at ₹94 per litre, while diesel is priced at ₹87 per litre. After the hike, these will rise to ₹96 and ₹89 per litre, respectively, unless state taxes or dealer margins vary.
New Excise Duty Rates (Per Litre)
| Fuel Type | Previous Duty | New Duty |
|---|---|---|
| Petrol | ₹19.90 | ₹21.90 |
| Diesel | ₹15.80 | ₹17.80 |
The price revision is a direct result of the revised central excise duty, which is collected by the central government and is separate from state VAT or dealer margins.
What Influences Fuel Prices in India?
Fuel prices in India are not regulated by the government anymore. They are revised daily and depend on a range of factors:
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Global Crude Oil Prices
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INR-USD Exchange Rate
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Central and State Taxes (Excise Duty & VAT)
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Domestic Demand and Consumption Trends
Since June 26, 2010, the pricing of petrol has been deregulated and is determined by oil marketing companies. Diesel was deregulated on October 19, 2014.
Oil companies such as IOC, BPCL, and HPCL now decide fuel prices daily based on international crude prices, refining costs, transportation, dealer commissions, and applicable taxes.
What to Expect Going Forward
The hike in excise duty comes amid rising global oil prices and may lead to inflationary pressure, especially in sectors heavily reliant on transportation and logistics. Experts suggest that state governments may come under pressure to cut VAT to cushion the blow for end consumers.
Additionally, this price hike may impact inflation-sensitive goods, increase freight costs, and influence consumer spending patterns, especially in rural and semi-urban areas.
