New Delhi – In a move that has caught the attention of both the public and the petroleum industry, the Indian government has announced a significant increase in the excise duty on petrol and diesel. This decision comes as a surprise, especially considering the recent decline in international crude oil prices.
The Hike
The government has raised the special additional excise duty (SAED) on petrol by ₹2 per liter and on diesel by ₹1.75 per liter. This increase will take effect immediately, leading to a rise in the retail prices of both fuels.
Impact on Consumers
While the government has stated that it will absorb the additional cost, consumers are likely to feel the pinch. The increase in excise duty is expected to lead to a rise in the retail prices of petrol and diesel, although the exact amount is yet to be determined.
Government’s Explanation
The government has justified the hike by stating that it is necessary to offset the losses incurred by public sector oil marketing companies (OMCs) due to the recent fall in international crude oil prices. The government also hopes to generate additional revenue through this move, which can be used to compensate OMCs for losses on LPG sales.
Industry Reaction
The petroleum industry has reacted cautiously to the government’s decision. While some have welcomed the move, others have expressed concerns about its impact on consumers.
What This Means for Consumers
The increase in excise duty is likely to lead to a rise in the retail prices of petrol and diesel. This could have a ripple effect on the economy, as it could lead to an increase in the prices of other goods and services.
What’s Next
It remains to be seen how the government’s decision will impact the petroleum industry and consumers. However, one thing is certain: the increase in excise duty is a significant development that will have far-reaching consequences.
Additional Information
- The government has also increased the price of LPG by ₹50 per cylinder.
- The new SAED on petrol is now ₹13 per liter, and on diesel, it is ₹10 per liter.
- The revised rates are applicable from today, April 8, 2025.
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