For the third time in January, the government on Saturday hiked the excise duty on petrol by Rs 1 per litre and on diesel by Rs 1.50. However, it did not tinker with the retail selling price of the two fuels.
The move will help the government mop up over Rs 3,200 crore in additional revenue, netting in Rs 17,000 crore in three months.
According to a Central Board of Excise and Customs (CBEC) notification, the basic excise duty on unbranded or normal petrol has been increased from Rs 8.48 per litre to Rs 9.48 and the same on unbranded diesel from Rs 9.83 to Rs 11.33.
The government had, on January 16, hiked the excise duty on petrol by Rs 0.75 per litre and Rs 2 on diesel.
Prior to that on January 2, the government had hiked the excise duty on petrol by Rs 0.37 per litre and on diesel by Rs 2 to mop up a little less than Rs 4,400 crore.
Had the government not raised these duties, the consumer price of petrol and diesel would have been lower by Rs 11.77 a litre and Rs 13.30 per litre, respectively.
(With inputs from PTI)