The Government on Tuesday raised excise duty on petrol and diesel by Rs. 2.25 and Re. 1 a litre respectively, but consumers will be spared of a price hike.
The move, which comes amid declining prices of crude oil in the international market, will boost government revenue and help it contain the fiscal deficit.
The revised excise duty on petrol and diesel came into effect from Tuesday, official sources said.
The move will have no impact on retail prices of petrol and diesel, they said.
This is the second hike in excise duty in three weeks. On November 12, the government had raised the excise duty by Rs. 1.50 per litre on both petrol and diesel but that did not have any impact on the retail prices.
In view of the declining prices of crude, oil marketing companies had on Monday cut petrol price by 91 paise a litre, the seventh reduction since August, and diesel by 84 paise per litre, the third straight cut.
