'Wow Modi ji wow!!' Excise duty hike sparks Opposition attack amid global oil price dip
Last Updated: Apr 07, 2025, 06:48:00 PM IST
The Union government has raised the excise duty on petrol and diesel by ₹2 per litre, effective April 8, 2025, to boost revenue. Congress President Mallikarjun Kharge criticized the move, citing declining crude oil prices. The Oil Ministry assured this hike won't impact consumers due to recent retail price cuts. Major oil marketing company shares fell following the announcement.
The Union government on Monday raised the excise duty on petrol and diesel by ₹2 per litre, effective April 8, 2025.
The move, aimed at boosting revenue amid global oil price fluctuations and external tariff pressures, drew sharp criticism from the opposition.
Congress President Mallikarjun Kharge criticised the decision, citing a 41% decline in international crude oil prices since May 2014.
He said, "Despite crude oil prices falling by 41% since May 2014, the Modi government has increased excise duties instead of passing on the benefit to the common people.
" — kharge (@kharge) Kharge questioned the timing of the hike, highlighting the burden on consumers even as Brent and WTI crude prices touched their lowest levels since April 2021.
Brent futures fell by $2.23 to $63.35 a barrel, and WTI futures declined by $2.22 to $59.77. Both benchmarks recorded weekly losses of over 10%. The Oil Ministry clarified that the excise duty hike would not affect consumers, as it would be offset by recent retail fuel price cuts . The latest round of price reductions came on March 14, following a freeze in pump prices that began in May 2022.
Live Events Despite the assurance, shares of major oil marketing companies saw declines on the Bombay Stock Exchange.
Reliance Industries closed 2.80% lower at ₹1170.
95, while Indian Oil , Hindustan Petroleum , and Bharat Petroleum dropped between 1.3% and 2.7%. Kharge also expressed concern over stock market volatility, alleging government inaction.
"Investors have lost ₹19 lakh crore, and the Modi government is in a Kumbhakarani sleep regarding tariff policies," he said.
The government last cut excise duty in 2022, slashing levies by ₹13 per litre on petrol and ₹16 on diesel.
Oil Minister Hardeep Singh Puri recently said further cuts remain possible if crude prices stay low.
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Union Petroleum Minister Hardeep Singh Puri says petrol and diesel rates in India may ease once recently bought cheaper crude reaches refiners, after global oil prices cooled and Brent slipped below $80 a barrel. The signal matters because India imports most of its crude, so any sustained fall can filter through to motorists, freight users and inflation. But the relief is unlikely to be immediate, because fuel prices depend on inventory cycles, logistics and how quickly oil companies pass on lower input costs.
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