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

Excise duty on petrol and diesel on Saturday was hiked by Rs 3 per litre as the government looked to mop up gains arising from fall in international oil prices. 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.

Additionally, road cess on petrol was raised by Rs 1 per litre each on petrol and diesel to Rs 10. The increase in excise duty would in normal course result in a hike in petrol and diesel prices but most of it would be adjusted against the fall in rates that would have necessitated because of slump in international oil prices.

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