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Govt hikes excise duty on petrol and diesel by Rs 3 per litre

The government on Saturday increased excise duty on petrol and diesel by Rs 3 per litre as it looked to mop up gains arising from fall in international oil prices.

The special excise duty on petrol was hiked by Rs 2 to Rs 8 per litre in case of petrol and to Rs 4 in case of diesel, an official notification said.

Road cess on petrol was also raised by Rs 1 per litre each on petrol and diesel to Rs 10.

The increase in excise duty would normally lead to a hike in oil prices.

However, most of it would be adjusted against the fall in rates that would have necessitated because of the slump in international oil prices.

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