India raises export, excise duty on petrol, diesel by 2 rupees per litre – Firstpost

The Indian government on Monday (April 7) raised excise duty on petrol and diesel by ₹2 per litre, as per a notification issued by the Department of Revenue, Ministry of Finance.

However, the government has clarified that despite an increase in excise duty, there will be no increase in retail prices and the burden of the increased cost will be borne by the Public Sector Undertakings or government-owned firms.

“Let me clarify upfront and on the record — this will not be passed on to the consumer,” said Oil Minister Hardeep Singh Puri in a press conference.

Additionally, Puri has also announced a 50-rupee hike in the prices of LPG cylinders. The new price of a 14.2 kg LPG cylinder is 853 rupees.

Puri pointed out that global crude oil prices have fallen to about $60 per barrel. But India’s state-run oil marketing companies (OMCs) are still working with older stock that they bought at an average price of $75 per barrel. Since these companies usually keep inventory for more than 45 days, there’s a time lag before the drop in global prices reflects at the pump.

“If crude stabilises in the vicinity of $60- $65, OMCs will have the headroom to look at price,” the minister added.

Oil prices continued to fall on Monday, with Brent futures losing $2.43 (3.7 per cent) to settle at $63.15 per barrel and WTI crude futures declining by 3.9 per cent to $59.57.

Saudi Arabia, the world’s largest oil exporter, has also slashed prices for crude sold to Asian buyers in May by up to $2.3 per barrel.

The recent drop in global crude oil prices is mainly because of two things: more oil supply from countries outside OPEC, and less demand for oil overall. This falling demand has gotten worse due to trade tensions that started after US President Donald Trump introduced new tariffs. Together, these factors have pushed prices down.

(With inputs from agencies)