Govt Hikes Excise Duty On Petrol, Diesel By Rs. 2/Litre – No Immediate Price Change For Consumers | V3Cars

This move by the government is reportedly intended to absorb the potential reduction in fuel prices that would have otherwise occurred due to the recent decline in international crude oil prices.

What Does The Hike In Excise Duty On Petrol And Diesel Mean For You?

Despite the hike in excise duty on petrol and diesel, sources within the oil industry suggest that consumers are unlikely to feel an immediate impact on retail prices. Industry insiders indicate that oil marketing companies (OMCs) are expected to adjust the increased excise duty against the margin they would have otherwise passed on to consumers as a price cut, following the downward trend in the global oil market.

While the official order did not explicitly state the reason behind the excise duty hike or its intended impact on retail prices, the prevailing sentiment within the industry is that it is a strategic fiscal measure to offset potential revenue losses from lower international oil prices.

It remains to be seen how long oil marketing companies (OMCs) will be able to absorb this increased excise duty and whether future fluctuations in global oil prices will eventually necessitate a revision in retail prices for petrol and diesel across the country. For now, however, consumers can expect the current prices at fuel stations to remain unchanged.

This decision comes at a time when global oil prices have been fluctuating due to a combination of factors, including production levels and geopolitical developments. The government's move to increase excise duty allows it to bolster its revenue without directly burdening the end consumer with higher prices at the pump.

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