India is gearing up for a petrol and diesel price increase following the decision of the government to raise excise duty on both fuel by ₹2 per litre. The increase comes despite the fact that the international crude oil price has eased in recent periods on fears of a global trade war being triggered by retaliatory tariffs of the U.S. administration.
Consumers, who are already struggling with inflation, will likely feel the bite as increased fuel prices could further tighten family budgets and push up transport and commodity prices.
The Indian Finance Ministry announced that this rise in excise duty will take effect from April 8, 2025. In a statement, the Petroleum and Natural Gas Ministry assured citizens that Public Sector Undertaking (PSU) Oil Marketing Companies stated that there would be no short-term revision in petrol and diesel retail prices following the revision in excise duty.
In December 2024, the government had removed the windfall profit tax on domestic crude oil production and fuel exports due to decreasing global oil prices in an attempt to lower some of the cost burdens on consumers.
Petrol prices were ₹94.77 per litre in New Delhi, ₹103.50 in Mumbai, ₹100.80 in Chennai, and ₹105.01 in Kolkata on April 7, 2025. Diesel prices stood at ₹87.67 per litre in New Delhi, ₹90.03 in Mumbai, ₹92.39 in Chennai, and ₹91.82 in Kolkata.
