Excise Duty Hike Sparks Debate Amid High Fuel Prices Despite Global Crude Drop

By A Staff Reporter

New Delhi – The central government’s decision to hike excise duty on petrol and diesel by Rs 2 per litre has reignited public and political debate over the persistent high fuel prices in India, despite a notable drop in global crude oil prices.

Announced on Monday, the hike in excise duty—a central tax levied on fuel—would typically result in an increase in prices at the pump. However, officials confirmed that retail prices for consumers will remain unchanged, as the higher tax is being offset by reductions warranted by declining international oil prices.

Still, the move has drawn sharp scrutiny, with critics pointing out that Indian consumers continue to pay some of the highest fuel prices globally, largely due to heavy taxation by both central and state governments. Excise duty alone constitutes a significant portion of the final retail cost of fuel in India, making any changes to it a matter of immediate public impact.