Excise Duty and LPG Price Rise in India: Compare Petrol and Diesel Rate Changes in India with Neighbours

The centre government raised the excise tax on petrol and diesel by Rs 2 per litre, with effect from April 8, 2025 on Monday. However, the Ministry of Petroleum and Natural Gas (MoPNG) assured Indian customers that the price increase will not impact them.

Even though the government has raised the excise duty, the Indian consumers will not experience an increase in fuel prices at gas stations for now. The cost of petrol and diesel remains the same as before, so common people will not face any immediate financial impact from the excise duty hike when refueling their vehicles.

The Ministry of Petroleum and Natural Gas posted in its official X (Twitter) handle, "Despite the recent hike in ExciseDuty, PSU Oil Marketing Companies have confirmed there will be no increase in retail prices of Petrol and Diesel. Fuel costs remain unchanged Fuel costs remain unchanged."

Excise Rates Up By Rs.2 on Petrol and Diesel

At a press conference, Union Oil Minister Hardeep Singh Puri also confirmed it, by saying, "You would have seen a notification from the Ministry of Finance saying that the excise rates are going up by ₹2 on petrol and diesel. Let me clarify upfront on the record, this will not be passed on to the consumer."

Union minister Puri also disclosed during his press briefing that fuel prices in India had generally decreased over the last three years. He also appreciated the government of India for handling the global oil crisis problems smoothly.

MoS Suresh Gopi stated that India is the only large economy that has lowered the price of petrol and diesel in the past three years in a written response to a question asked by Congress leader and Rajya Sabha MP Randeep Singh Surjewala in Rajya Sabha.

MoS Gopi answered, "India has been the only major economy in the world where the prices of petrol and diesel have come down in recent years."

Fuel Price Rise in India Vs Neighbouring Countries From 2021-2024

Here is a comparison of how petrol and diesel prices have changed in India and some neighboring countries between November 2021 and December 2024, highlighting the differences in fuel price trends as per the news report.

India: Petrol and Diesel Prices Drop

In India, petrol prices have reduced by 13.60% between November 2021 and December 2024. Consumers are paying less for petrol now compared to the past. Diesel prices have also dropped, by 10.92%, which indicates a reduction in the cost of diesel fuel for vehicles.

Pakistan: Price of Petrol Increase By 27.90% and Diesel By 33.37%

In Pakistan, however, the situation is quite different. Petrol prices have increased by 27.90% during the same period. The Pakistani citizens are now paying more to fill up their vehicles. Diesel prices in Pakistan have seen an even bigger increase, rising by 33.37%. This increase in fuel prices could put a strain on people's daily expenses.

Bangladesh: Price of Petrol Increase By 12.62% and Diesel By 29.31%

Bangladesh has also experienced a rise in fuel prices. Petrol prices have increased by 12.62%, while diesel prices have risen by 29.31%. This means that fuel has become more expensive for people in Bangladesh, and they may face higher costs for transportation.

Sri Lanka: Huge Rise in Petrol (54.29%) and Diesel Prices (98.59%)

Sri Lanka has faced the largest increase in fuel prices among the countries mentioned. Petrol prices have gone up by 54.29%, and diesel prices have surged by an even bigger 98.59%. This dramatic rise in fuel prices could significantly impact the cost of living in Sri Lanka, making transportation and goods more expensive.

Nepal: Price Hikes of Petrol by 20.06% and Diesel by 31.64%

In Nepal, petrol prices have increased by 20.06%, while diesel prices have risen by 31.64% during the same period.

What is Excise Duty?

Excise duty is a form tax applicable on fuels. In order to generate one-time revenue, the central government levies excise duty on fuel and diesel companies. In India, the current excise tax on petrol is Rs. 13, and on diesel is Rs. 10.

Indian Oil Corporation Limited posted, "The ExciseDuty increase of Rs. 2 per litre on petrol and diesel by Central Government will not be passed on to the consumers. On one hand, this will insulate the customers from the price hike while on the other hand, the collected amount may be utilised towards under-recovery of LPG, providing relief to Oil Marketing Companies."

LPG Price Hike By Rs. 50 Per Cylinder

Union oil Minister Hardeep Singh Puri also announced on Monday that the cost of a domestic LPG or cooking gas cylinder has increased by Rs 50 per cylinder. Both consumers, those who buy it in the general category and those on subsidies now pay more.