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

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)