Petrol-Diesel Price Hike: Inflation Surges Again as Fuel Rates Rise by ₹2 per Litre From Midnight

Inflation continues to tighten its grip on the common man, and now, rising fuel prices are set to add to the financial burden. The central government has announced a hike in excise duty on petrol and diesel by ₹2 per litre, leading to an increase in fuel prices starting midnight tonight.

New Fuel Prices Effective from Midnight

The central government's Revenue Department has officially decided to increase the excise duty in response to global economic factors. As a result, the prices of petrol and diesel will increase by an average of ₹2 per litre.

Currently, excise duty on:

• Petrol stands at ₹19.90 per litre, which will now rise to ₹21.90.

• Diesel stands at ₹15.80 per litre, and it will now increase to ₹17.80.

Officials have attributed the decision to global oil price volatility and the recent tariff hikes announced by former U.S. President Donald Trump, both of which have had a ripple effect on global fuel markets.

This sudden hike means that the common man will once again feel the pinch, as the rise in transport costs could lead to higher prices of essential commodities as well.

How Are Petrol and Diesel Prices Determined?

Until June 2010, petrol prices in India were regulated by the government and revised every 15 days. However, starting June 26, 2010, the pricing responsibility was handed over to state-owned oil marketing companies (OMCs). By 2014, the control was completely relinquished, and pricing became market-linked.

Today, petrol and diesel prices are determined by the oil companies based on the following factors:

• International crude oil prices

• Currency exchange rates

• Central and state taxes

• Transportation and logistical costs

• Profit margins

These dynamic pricing mechanisms mean that fuel rates can fluctuate daily, making them highly sensitive to both domestic policies and global economic shifts.