The government on Saturday increased excise duty on petrol and diesel by Rs 3 per litre as it looked to mop up gains arising from fall in international oil prices.
The special excise duty on petrol was hiked by Rs 2 to Rs 8 per litre in case of petrol and to Rs 4 in case of diesel, an official notification said.
Road cess on petrol was also raised by Rs 1 per litre each on petrol and diesel to Rs 10.
The increase in excise duty would normally lead to a hike in oil prices.
However, most of it would be adjusted against the fall in rates that would have necessitated because of the slump in international oil prices.
