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

Additional revenue will help govt meet its FY21 target of bringing down the fiscal deficit to 3.5% of GDP

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