BPCL, HPCL, IOC Share Prices Decline: Government Increases Excise Duty On Petrol, Diesel

The Centre on Monday announced an increase in excise duty on petrol and diesel by Rs 2 each, according to a gazette notification. This decision has led to a significant decline in the share prices of major oil marketing companies (OMCs) in India.

The government announced that starting April 8, 2025, the excise duty on petrol will be increased to Rs 13 per litre, and the excise duty on diesel will be increased to Rs 10 per litre.

The increase in excise duty is expected to impact the profitability of these OMCs, as higher duties typically lead to increased costs for consumers, potentially reducing demand. Analysts predict that this move could lead to further volatility in the stock market, especially for companies directly involved in the petroleum sector.

The hike in excise duty means higher costs for consumers, which can lead to reduced demand for fuel. This impacts the profitability of oil marketing companies like BPCL, HPCL, and IOC.