Petrol-Diesel Price Hike: Excise Duty Raised by ₹2 Per Litre — How It Will Impact Your Wallet

Petrol-Diesel Price Update:
In a move that comes amid global oil price fluctuations and rising market tensions due to U.S. tariffs, the Indian government has announced an increase in excise duty on petrol and diesel by ₹2 per litre.

Fuel Prices to Stay Unchanged — For Now

While excise duty has been hiked, there’s no immediate need for consumers to panic. Retail prices of petrol and diesel at fuel stations will remain unchanged for the time being.

According to the Petroleum Ministry, international crude oil prices are currently low, allowing the government to absorb the extra tax without passing the burden onto consumers.

Why Was This Decision Taken?

This move comes at a time when:

• Global crude oil prices are swinging wildly.

• U.S. tariff policies are adding to market volatility.

• The Indian government needs to boost revenue.

By raising excise duty when global oil prices are soft, the government ensures that consumers don’t feel the pinch immediately, while strengthening its own coffers.

Turbulence in the Stock Market

The decision triggered nervousness in the stock market, especially among oil companies. Here’s how major players closed on Monday at the BSE:

• Reliance Industries: ₹1170.95 (down 2.80%)

• Indian Oil Corporation: ₹128 (down 1.65%)

• Hindustan Petroleum: ₹348.20 (down 2.75%)

• Bharat Petroleum: ₹275.65 (down 1.34%)

Investors are worried that higher government taxes could eat into company margins.

What’s the Government Strategy Here?

Excise duty is one of the government's most reliable sources of revenue. Whenever there’s a need to boost income quickly, raising taxes on petrol and diesel is an easy go-to move.

Here’s why it’s effective:

• Consumers don’t immediately feel the hit (as long as retail prices stay controlled).

• The government collects significant additional revenue.

• It shows up positively in the budget as higher income.

What Happens Next?

The big question now is: where will global crude oil prices go?

• If prices continue to fall, the current relief at the pump will likely continue.

• But if crude prices rise again, the government may have no choice but to pass the ₹2/litre burden onto consumers.

Bottom Line:
Your fuel bills are safe for now, but any shift in global oil prices could quickly change the situation.