Fuel price hike alert: Inflation accelerates as tax burden on petrol and diesel increases from tomorrow

Petrol and diesel in India will become more expensive as the government has increased excise duty on both the fuels by Rs 2 per litre. The decision comes at a time when global crude oil prices are actually declining, influenced by the fear of a global trade war triggered by the US administration's retaliatory tariffs.

Timing raises concerns amid inflationary pressures

The increase is likely to fall on consumers who are already facing inflationary pressures.Even if the government intends to increase its revenues, the timing has caused worries, particularly with the Donald Trump tariffs uncertainty, as fuel prices would squeeze household budgets and increase transportation and commodity prices even further. According to the Finance Ministry's recent notification, the aforementioned change shall take effect from April 8, 2025.