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Fuel Prices Steady for Consumers Despite Excise Duty Revision by Government

The Indian government revised central excise duties on petrol and diesel, with petrol set at Rs 23 per litre and diesel at Rs 33 per litre effective May 1, 2026. Despite these changes, IOC confirmed that retail prices for petrol, diesel, and domestic LPG will remain unchanged, protecting consumers from rising global crude oil prices. The company noted that 80% of petroleum products have no price change, with increases limited to industrial segments like bulk LPG and international airline ATF. The decision reflects a calibrated approach to balance global trends with domestic consumer protection and economic stability.

Key Points: Fuel Prices Unchanged Despite Excise Duty Revision

  • Government revises central excise duty on petrol to Rs 23/litre and diesel to Rs 33/litre
  • IOC confirms retail prices for petrol, diesel, and domestic LPG unchanged
  • 80% of petroleum products see no price change, insulating consumers
  • Price hikes limited to industrial segments like bulk LPG and international airline ATF
3 min read

Fuel prices to remain steady for consumers despite excise duty revisions by Government, says IOC

Indian government revises excise duty on petrol and diesel, but IOC confirms retail prices for consumers remain unchanged, insulating public from global crude oil rise.

"The retail prices of Petrol, Diesel and domestic LPG (14.2 kg cylinders) have remained unchanged, fully insulating domestic consumers from the recent increase in international fuel prices - Indian Oil Corporation"

New Delhi, May 1

The Indian government revised central excise duties on petrol and diesel, but retail prices for consumers will remain unchanged, Indian Oil Corporation said on Friday in a press release.

In three notifications issued on Thursday, the Ministry of Finance set the central excise duty on petrol at Rs 23 per litre and on diesel at Rs 33 per litre, effective from May 1, 2026. The government has also reduced the additional excise duty on petrol to zero.

The changes were made under the Central Excise Act, 1944 and related Finance Acts, and are the second revision in fuel duties in the last month.

Despite the excise duty adjustments, IOC confirmed that retail prices of petrol, diesel and domestic LPG will not change, insulating the public from the recent rise in global crude oil prices. "The retail prices of Petrol, Diesel and domestic LPG (14.2 kg cylinders) have remained unchanged, fully insulating domestic consumers from the recent increase in international fuel prices," IOC said in a press release.

The company added that around 90% of petrol and diesel consumption in the country is by the general public, and there will be no change in their prices. Similarly, prices of domestic LPG for 33 crore households, ATF for domestic airlines on scheduled operations, and PDS kerosene will also remain the same.

Overall, about 80% of petroleum products have seen no price change, ensuring stability for most consumers, the company said in a press release.

Price revisions have been limited to select industrial segments, which account for a small share of total consumption and are adjusted monthly based on global rates. Bulk and commercial LPG cylinders, which make up less than 1% of consumption, have seen a price hike. Bulk diesel and ATF for international airlines have also been revised upwards. At the same time, around 4% of petroleum products have seen a price cut, reflecting global market movements.

In total, 80% of products have no change, 4% have seen a decrease, and 16% have seen an increase, mainly for industrial use.

IOC said the decision reflects a "calibrated and balanced approach" adopted by oil marketing companies under the guidance of the Ministry of Petroleum and Natural Gas. The aim is to align with global trends while protecting domestic consumers and ensuring economic stability.

The move comes as Brent crude recently touched $126 per barrel on Thursday, due to geopolitical tensions in West Asia. Retail fuel prices in India include the base price, central excise duty, state VAT, and dealer commission, so changes in excise duty do not always lead to an immediate change at the pump.

- ANI

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Reader Comments

J
James A
As an expat living in Mumbai, I've seen fuel prices fluctuate wildly. This is actually reassuring. Back home in the US, gas prices would have shot up by 20% with crude at these levels. India's approach seems more consumer-friendly. Kudos to the petroleum ministry for this balancing act.
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Priya S
While I appreciate stability for common consumers, I wish the government would explain the formula better. 90% consumption is by public? That's good, but what about the impact on logistics? My dad runs a small transport business, and diesel is his biggest expense. If bulk diesel prices are up, our goods' prices will eventually increase. Not fully immune, I think.
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Rahul R
Typical government juggling! Excise duty revision but no change at pump - sounds like they're trying to balance their books without upsetting voters. At $126/barrel, they must be taking a hit somewhere. Let's see if this lasts if crude stays high. 😅
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Sarah B
I moved to Delhi from Canada last year and was dreading another fuel hike. This is a pleasant surprise! My CNG car and two-wheeler running costs were already high with the state VAT in Delhi. At least the central government is trying. But wish they'd also address state taxes - that's where the real pinch is.
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Deepak U
Good move overall. But I'm concerned about ATF for international airlines going up - that means my next trip abroad might cost more. And for the common man, LPG cylinders remaining same is great news for my family! 33 crore households protected, that's massive. 👏🏻

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