Govt mulls new fuel duty hike as crude prices fall

There has been a 16.7% fall in the country's average crude oil import price

- Rajeev Jayaswal

NEW DELHI: The government is considering another increase in special excise duty on petrol and diesel to get a share of the windfall profits of oil marketing companies arising from low crude prices, people familiar with the matter said.

There has been a 16.7% fall in the country's average crude oil import price (Indian basket) to $61.9 a barrel on Wednesday as compared to $74.31 a barrel on April 7, the day the government announced excise duty hikes on petrol and diesel by ₹2 a litre. That increase was expected to fetch the government ₹32,000 crore in 2025-26; if the government goes ahead with a ₹4 increase (per litre) in the second round, it would fetch an additional ₹64,000 crore this fiscal.