Central Petroleum and Natural Gas Minister Hardeep Singh Puri announced a two-rupee increase in excise duty on petrol and diesel, aimed at compensating ₹43,000 crores in losses suffered by public sector oil and gas marketing companies due to gas share costs. Puri emphasized during a press conference in New Delhi that this increase will not impact retail prices for consumers. He referenced a Finance Ministry notification about the excise duty change and reiterated that the burden would not be passed on to consumers.
Puri explained the rationale behind the excise duty hike, noting that although international crude oil prices have decreased to approximately $60 per barrel, oil marketing companies are managing stocks based on previous higher prices, which average around $75 per barrel due to 45 days of stock holdings. He stressed that the primary intention of this excise adjustment is to support these companies rather than to raise consumer costs.
Additionally, he mentioned that the price of LPG cylinders would see an increase of ₹50, adjusting rates for various beneficiaries. For Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, the cost will rise to ₹500, while for other consumers, it will increase from ₹803 to ₹853 per cylinder. The government plans to review this price increase in the future, maintaining that retail petrol and diesel prices will remain stable despite the excise duty adjustment.
