The government has increased excise duty on petrol and diesel by Rs 2 per litre and the price of LPG by Rs 50 per cylinder to increase the revenues due to falling global crude prices. The motive behind this move is to balance the financial impact of the reduction in tax and windfall tax. The persistence of low crude price suggests potential future fuel price reductions according to the Ministry of Petroleum and natural gas.
The Modi government raised price of domestic cooking gas by ₹50 per cylinder and excise duty on petrol and diesel by Rs 2 per litre on Tuesday to protect public sector oil marketing companies to get recovered, at a time when international crude oil prices decline to a four-year low in the fears of a Trump-tariff which caused US recession holded the global financial markets.
The price of the 14.2 kg cylinder for domestic consumers in Calcutta will rise to ₹879 after the hike announced by Union Petroleum Minister Hardeep Singh Puri. He also said that cylinders under the Ujjwala scheme, which provides subsidised cylinders for economically weaker sections, will go up by ₹50 a cylinder, while the increase in the price of LPG also added the rise in excise duty on petrol and diesel by Rs 2 per litre due to fall in crude price globally government have to balance the financial impact it will help in increasing govt revenue for possible capital expenditure after tax relief given in the Union Budget 2025.
