Petrol and Diesel: Indian Govt hikes excise duty by Rs 3 per litre
To mop up gains arising from the fall in international oil prices, the government, on Saturday, increased the excise duty on petrol and diesel by Rs 3 per litre. The special excise duty on petrol was hiked by Rs 2 to Rs 8 per litre and to Rs 4 in case of diesel, an official notification said.
Road cess too was raised was raised by Rs 1 per litre each on petrol and diesel to Rs 10. It is said that this 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.