Centre increases excise duty on petrol and diesel by Rs 2

New Delhi: The Union government on Monday increased the excise duty on petrol and diesel by Rs 2. According to a notification by the Revenue department of the Union Finance Ministry, the excise duty on petrol was increased to Rs 13 per litre and that on diesel to Rs 10.

While the order did not say what impact it will have on retail prices, industry sources said retail prices are unlikely to be changed. However, the Ministry of Petroleum said the retail prices will not be changed by the hike.

"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 on Monday," the Ministry of Petroleum & Natural Gas wrote on X. The new rates will be come into force on Tuesday.

Crude oil prices down

Meanwhile, crude oil prices have plummeted after US President Donald Trump initiated a global trade war—imposing a 34% tariffs on US goods. Concerns of a tariff-induced drop in demand comes as the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, announced it is increasing output to 411,000 barrels per day in May, up from the previously planned 135,000 barrels per day, the organization said in a statement.