Petrol price hike: The central government has increased the excise duty on petrol and diesel by ₹2 each, a circular from the Ministry of Finance said on Monday.
With the latest hike, the prices of petrol and diesel across India are expected to increase significantly.
The petrol price hike and diesel price hike will come into effect from April 8, the ministry said in its notification.
The decision comes at a time when global oil prices are undergoing volatility.
What is the increased excise duty on petrol?
The excise duty on petrol was increased to ₹13 per litre and that on diesel to ₹10, the order said.
Petrol, diesel price hike: Will you pay more?
The Ministry of Petroleum and Natural Gas on Monday gave a clarification for consumers on Monday about the petrol price hike, saying that customers will not be affected by the decision.
“PSU Oil Marketing Companies have informed that there will be no increase in retail prices of #Petrol and #Diesel, subsequent to the increase effected in Excise Duty Rates today,” the ministry said.
The increased excise duty is likely to be adjusted against the cut in petrol and diesel prices that was warranted because of a fall in international oil prices, PTI earlier reported quoting industry experts.
This is why customers will not feel the heat of petrol price rise, as per the news agency.
Hardeep Singh Puri says fuel prices may be adjusted
Addressing a press briefing, Union minister Hardeep Singh Puri said there will be ‘no hike in fuel prices right now’.
“Let me clarify upfront on the record, this will not be passed on to the consumer…The international price of crude came down to around $60 a barrel, but please remember that our oil marketing companies carry inventories over a 45-day period,” he said.
Puri also noted that the petrol and diesel price may be adjusted in the future.
“You can legitimately expect prices of petrol and diesel to be moderated by the oil marketing companies in keeping with the global price. In a deregulated sector, you can expect them to accordingly adjust the market retail price,” he said.
“As we go forward from here, gas prices across the world are expected to come down,” he said, adding that there will be price adjustments if such a thing happens.
About The Author
