Petrol Price Unchanged in Kolkata Despite National Excise Duty Hike
Fuel costs are a hot topic in Kolkata, and everyone’s been watching pump prices closely this year. But while the central government announced a notable increase in excise duty—raising it by ₹2 per litre for both petrol and diesel back in April 2025—the price at the pump in Kolkata has barely flinched. As of July 1, 2025, petrol price still stands at ₹103.94 per litre, holding steady for another month. This consistency contrasts with the national conversation around taxes and rising costs, and for now, offers a rare sense of predictability for drivers in the city.
So why aren’t we seeing wild swings, even when New Delhi pulls tax levers? The answer boils down to how federal and state taxes, distribution overheads, and broader market policies all interact. Kolkata’s fuel distributors have largely absorbed the central government’s latest excise duty hike by maintaining local taxes and subsidies. Various city fuel stations continue to sell at the same rates seen through June, largely insulating consumers from the rollercoaster of global oil pricing—at least in the short term.
Global Oil Volatility versus Local Stability
The story doesn’t end at the city borders, of course. The global crude oil market has been anything but calm, with ongoing geopolitical tension in the Middle East, fluctuating demand from major economies, and production shifts impacting the price of imported crude. In past years, these factors had an immediate ripple effect, often causing daily price changes at Indian fuel stations. But in 2025, the government appears committed to shielding regular buyers—even as it juggles internal fiscal pressure.
Why the tax hike now? Officials in New Delhi point to the need to increase revenue collection, especially as the country deals with economic recovery expenses and growing public spending. Excise duty—the tax charged on the sale of petrol and diesel—offers the government a direct line to bolster its finances. However, raising these taxes always treads a fine line: push too hard and everyday consumers feel the pinch, leading to loud public outcry, but pull back too much and the exchequer runs dry.
In Kolkata, the relatively unchanged price isn’t just luck. The state government’s role in moderating local VAT (Value Added Tax) and distribution strategies has softened the impact. Distributors, retailers, and policy planners have worked to avoid a sudden jump that could disrupt budgets for thousands of taxi drivers, daily commuters, and businesses reliant on stable fuel rates.
Still, plenty of uncertainty lingers. Any sharp move in international crude prices, or another change in central or state taxes, could quickly upset the sense of stability on Kolkata’s roads. For now, though, residents continue to fill up at rates that have stayed remarkably consistent through June and the start of July. With the city’s economic rhythms and household expenses closely tied to these prices, many hope this calm holds even as the world market keeps shifting.
