On 7th April, the Indian government announced a Rs 2 per litre hike in Special Additional Excise Duty (SAED) on petrol and diesel, effective from 8th April.
With this revision, SAED on petrol will rise from Rs 11 to Rs 13 per litre and diesel from Rs 8 to Rs 10 per litre. Despite the hike, the Petroleum Ministry confirmed that retail prices will remain unchanged. Petroleum Minister Hardeep Singh Puri assured consumers that the increase would not be passed on to them, stating, “This will not be passed on to the consumer.”
Puri explained that while crude oil prices have dropped to around $60 per barrel, state-run oil marketing companies (OMCs) manage inventory purchased at an average of $75 per barrel, as they typically hold stock for over 45 days. He added that OMCs may consider price revisions if crude stabilises between $60 and $65 per barrel.
This move comes amid a sustained decline in global crude prices, driven by rising supply from non-OPEC (Organisation of the Petroleum Exporting Countries) producers and weaker demand. The downturn has been further intensified by trade tensions following tariffs imposed by US President Donald Trump.
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