Excise duty on petrol and diesel hiked by Rs 3 per litre amid declining global crude oil prices

The central government on Saturday hiked the excise duty on petrol and diesel by Rs 3 per litre. This is believed to be as India's measure to mopping up additional money from the fall in international crude oil prices, as the country battles weak revenues.

The special excise duty on petrol was hiked by Rs 2 per litre to Rs 8 per litre and to Rs 4 in case of diesel. In addition to this, road cess was hiked by Re 1, effectively resulting in a Rs 3 per litre on both commodities, according to an official notification.

The cost of petrol in Delhi on Saturday thus stands at Rs 69.87 per litre and diesel is selling at Rs 62.58 per litre in the national capital.

According to a report by news agency ANI, the prices of petrol and diesel, however, are marginally lower than yesterday as the oil marketing companies have decided to absorb the hike and pass on some of the benefits to the consumer.

Global crude oil prices fell by as much as a third following Saudi Arabia's move to start a price war with Russia amid worries over the spread of coronavirus.