Central Excise Duty Revised on Petrol and Diesel

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Dated: 10.06.2025

Central Excise Duty Revised on Petrol and Diesel

The Central Government has notified revised central excise duties on key petroleum products—petrol and diesel—through Notification No. 02/2025–Central Excise dated 7th April 2025. These changes amend the earlier rates specified under Notification No. 05/2019–Central Excise, which governs excise duty on motor spirit and high-speed diesel.

Revised Excise Duty Rates Effective from 8th April 2025

Sl. No.	Petroleum Product	Previous Rate	Revised Rate (from 08.04.2025)
1	Petrol (Motor Spirit)	Notified earlier	Rs. 13 per litre
2	High-Speed Diesel (HSD)	Notified earlier	Rs. 10 per litre

Note: The earlier rates are superseded by this amendment for the corresponding serial numbers in the original notification.

Legal Framework Referenced

Section 5A of the Central Excise Act, 1944: Allows the government to exempt excise duties or alter them in public interest.
Section 147 of the Finance Act, 2002: Pertains to levy and collection of special additional excise duties on petrol and diesel.

Policy Context & Implications

This revision is likely part of the government’s strategy to:

Align excise structure with global crude price movements
Balance revenue generation without excessively burdening consumers
Support inflation control measures in a pre-election or post-budget context

The change could also affect retail fuel prices, subject to parallel adjustments in state VAT and dealer margins.

Industry Impact

Oil Marketing Companies (OMCs): May need to revise pricing mechanisms at depots and petrol pumps.
Transport and Logistics Sector: Cost structures may be marginally impacted.
Consumers: Potential fluctuation in retail fuel prices depending on how OMCs and state governments respond.

Conclusion

With Notification No. 02/2025–Central Excise, the government has formally updated the excise duty rates applicable to petrol and diesel, effective 8th April 2025. Stakeholders in the fuel supply chain should take immediate note for accounting, pricing, and compliance purposes.

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Source: CBIC, Ministry of Finance, Govt. of India

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