The central government has increased the excise duty on petrol and diesel by ₹2 per litre, raising the duty to ₹13 per litre for petrol and ₹10 per litre for diesel, according to a latest notification by the revenue department of the Ministry of Finance.

The adjustment is set to take effect on April 8.

However, despite the excise duty hike, the retail prices of both petrol and diesel are expected to remain unchanged, primarily due to the recent cuts in global crude oil prices.

The Ministry of Petroleum and Natural Gas, in an official statement via X, said that public sector oil marketing companies will not increase retail prices of petrol and diesel following the excise duty adjustment. ​"PSU Oil Marketing Companies have informed that there will be no increase in retail prices of #Petrol and #Diesel, subsequent to the increase effected in Excise Duty Rates today," the ministry said on X.

Globally, crude oil extended further losses today amid the US and China trade tensions. Both the Brent and WTI benchmarks dropped to their lowest levels since April 2021, with the former shedding 3% to $63.64 per barrel (11.30 GMT) and U.S. West Texas Intermediate crude futures slipping 3.1% to $60.05 per barrel.

In retaliation for US President Donald Trump's tariff war, China on Friday last week announced 34% additional tariffs on all goods imported from the United States. The move came after Trump slapped an additional 34% tariffs on Chinese goods, escalating a tariff war between the two largest economies in the world.

“On April 2, 2025, the US government announced the imposition of "reciprocal tariffs" on Chinese goods exported to the US. This practice of the US is not in line with international trade rules, seriously undermines China's legitimate rights and interests, and is a typical unilateral bullying practice,” China’s State Council Tariff Commission said while announcing retaliatory tariffs.

The Organisation of the Petroleum Exporting Countries i.e. OPEC+ group and its allies, meanwhile, have decided to increase crude oil production to 4,11,000 barrels per day (bpd) in May 2025, up from 1,35,000 bpd planned earlier.