Government hikes excise duty on diesel and petrol

NEW DELHI (Reuters) - India has raised excise duty on petrol and diesel to boost revenues and contain budget borrowing that could put off a likely cut in the retail prices of the two fuels.

The government has raised the factory gate tax by 1.50 rupees a liter each for the two fuels.

(Reporting by Nidhi Verma and Manoj Kumar; Editing by Douglas Busvine)