India raises special additional excise duty on petrol and diesel, says government notice 2025 best
On April 7, 2025, the Indian government announced an increase in the special additional excise duty (SAED) on petrol and diesel by ₹2 per litre, effective April 8, 2025. This adjustment raises the SAED on petrol to ₹13 per litre and on diesel to ₹10 per litre. citeturn0search1
Context and Rationale
This decision follows a significant decline in global crude oil prices, which have dropped to their lowest levels since April 2021. India raises special additional excise duty on petrol and diesel, says government notice 2025 best The government aims to capitalize on these lower prices to bolster its revenue without impacting consumers. citeturn0search4
Impact on Consumers
Oil Minister Hardeep Singh Puri assured that this duty hike would not be passed on to consumers. Instead, India raises special additional excise duty on petrol and diesel, says government notice 2025 best the increased tax burden will be absorbed by oil marketing companies. citeturn0news19
Financial Implications
The additional revenue generated from this excise duty increase is estimated to be around ₹32,000 crore annually. This revenue is intended to offset the under-recoveries faced by oil companies on the sale of liquefied petroleum gas (LPG). citeturn0search12
LPG Price Adjustment
In a related move, the government has permitted oil companies to raise the price of LPG cylinders by ₹50. This adjustment aims to address the financial losses incurred by these companies in the sale of cooking gas. citeturn0search12
Conclusion
The government’s strategy to increase excise duties on petrol and diesel, while ensuring that retail prices remain unaffected, reflects an effort to balance fiscal objectives with consumer interests amid fluctuating global oil prices.
