Excise tax on petrol hiked by Rs 2.25, disel by Rs 1 per litre

Zee Media Bureau

New Delhi: Government hiked excise duty on petrol by Rs 2.25 a litre, and on diesel by Rs 1 a litre effective tonight.

However government sources have said that there would be no impact on retail prices of petrol and diesel due to hike in excise duty.

The latest measures were expected to raise an additional 40 billion rupees ($650 million) in the remainder of the fiscal year to the end of March 2015, as per reports.

The government had last month hiked excise duty on petrol and diesel prices by Rs. 1.50 a litre each to mop up an additional Rs. 13,000 crore in revenue, a move that may translate into similar increase in retail rates.