Big Relief for Consumers! Petrol, Diesel, LPG & ATF prices remain unchanged despite duty hike — IOC explains

The government has revised central excise duties on petrol and diesel, but retail prices for consumers will remain unchanged, Indian Oil Corporation (IOC) said on Friday in a press release.

The Ministry of Finance, through three notifications issued on Thursday, fixed 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. These changes have been made under the Central Excise Act, 1944 and related Finance Acts. This is the second revision of fuel duties in the last month.

IOC assures no impact on consumers

IOC clarified that despite the revision in excise duties, there will be no change in retail prices of petrol, diesel and domestic LPG for consumers. The company said retail prices have remained unchanged, helping protect domestic consumers from the impact of rising international crude oil prices.

According to the IOC, around 90 per cent of petrol and diesel consumption in the country is by general consumers. It said there will be no change in prices for this segment. The company also said prices of domestic LPG for around 33 crore households, aviation turbine fuel (ATF) for domestic scheduled airlines, and PDS kerosene will also remain unchanged.

Price stability for majority of petroleum products

Overall, about 80 per cent of petroleum products in the country have seen no price changes, ensuring stability for most consumers, IOC said in its statement. Price revisions have been limited to select industrial segments that account for a small share of total consumption and are adjusted on a monthly basis depending on global price movements.

The company said bulk and commercial LPG cylinders, which account for less than 1 per cent of total consumption, have seen a price increase. Bulk diesel and ATF used for international airline operations have also been revised upwards. At the same time, around 4 per cent of petroleum products have seen a price reduction in line with global market trends.

Mixed movement across fuel categories

IOC stated that 80 per cent of products have no change in prices, 4 per cent have seen a decrease, while 16 per cent have seen an increase, mainly in industrial and commercial categories. The company described this as a calibrated and balanced approach under the guidance of the Ministry of Petroleum and Natural Gas.

The move comes at a time when Brent crude oil prices have recently touched $126 per barrel due to geopolitical tensions in West Asia. Retail fuel prices in India are influenced by base prices, central excise duty, state value-added tax (VAT), and dealer commission. As a result, changes in excise duty do not always lead to immediate changes in pump prices.

Export duty changes

The Finance Ministry has also revised export duties on diesel and aviation turbine fuel (ATF) for the next fortnight, starting May 1, while export duty on petrol continues to remain nil. The export duty on diesel has been set at Rs 23 per litre, while the ATF export duty has been fixed at Rs 33 per litre.

The ministry said there is no change in excise duty rates on petrol and diesel meant for domestic consumption. In April, export duties on petroleum products were increased, including higher levies on diesel and ATF.

LPG price revision

Separately, oil marketing companies on Thursday increased the price of 19-kg commercial LPG cylinders by Rs 993 with effect from May 1. However, domestic LPG cylinder prices remain unchanged. In Delhi, the price of a commercial LPG cylinder has increased to Rs 3,071.50. In Mumbai, it has gone up to Rs 3,024, and in Kolkata it now stands at Rs 3,205.

Aviation turbine fuel prices for domestic airlines have been kept unchanged in the latest monthly revision, providing relief to airlines. However, ATF prices for international flights have seen a marginal increase.