Excise duty hike on petrol, diesel to add Rs 43,000 cr to govt revenue

The government on Saturday increased taxes on petrol and diesel by Rs 3 per litre each, a move that may fetch it an additional revenue of around Rs 43,000 crore in a year.

While special excise duty was hiked by Rs 2, road cess was increased by Rs 1 per litre on the fuels, according to a notification issued by the Central Board of Indirect Taxes and Customs (CBIC).

After the latest hike, the excise duty on petrol has gone up to Rs 22.98 a litre from Rs 19.98, and that on diesel to Rs 18.83 from Rs 15.83 a litre. The decision to raise the duties was taken in view of the tight fiscal situation and the recent decline in crude oil prices, sources said.