Government Hikes Excise Duty on Fuel Amid Global Price Drop

The government has increased excise duty on petrol and diesel by Rs 2 per litre, raising petrol duty to Rs 13 and diesel duty to Rs 10. Industry sources indicate that the retail prices might remain unchanged, as the duty hike compensates for the reduced international oil prices.

The government on Monday announced an increase in excise duty on petrol and diesel by Rs 2 per litre, bringing the total excise duty to Rs 13 for petrol and Rs 10 for diesel, according to an official statement.

Despite the hike, retail prices are expected to stay steady, say industry insiders. They suggest the increased duty could be balanced by reductions in petrol and diesel prices prompted by lower international oil prices.

The adjustment is regarded as a strategic measure to align domestic fuel duties with fluctuating global oil markets, cushioning potential disruptions in retail pricing.

(With inputs from agencies.)