Excise duty on petrol and diesel increased by Rs 3 per litre

New Delhi, Mar 14: Excise duty on petrol and diesel was on Saturday 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 incase of petrol and to Rs 4 incase 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.

The price of petrol had hit a 9-month low of Rs 70 in the capital and that of diesel had hit a 13-month low of Rs 64.74 after a price war between major oil-producing countries slashed international crude oil prices by 25%.

Saudi Arabia triggered the crash in prices by announcing a sharp increase in oil production after Russia declined to reduce oil supply to contain a fall in oil prices due to declining demand in a meeting of petroleum exporting countries