Diesel and petrol get ₹2 per litre tax hike from April 8 as govt targets more revenue

India increased taxes on diesel and gasoline by 2 rupees a liter beginning Tuesday, a step that will help boost its revenue amid falling global crude oil prices.

The increased levies, to take effect from April 8, will be absorbed by the fuel retailers that will help keep pump prices of the products steady, according to the government.

Prime Minister Narendra Modi’s government has used declines in crude oil prices to shore up its earnings, keeping consumers from benefiting off lower oil prices. Multiple such adjustments were made when oil was plummeting during the pandemic.

The South Asian nation increased special additional excise duty on gasoline to 13 rupees (15 cents) a liter from April 8 against 11 rupees now, The duty on diesel will be increased to 10 rupees a liter from 8 rupees. State fuel retailers in the country have kept diesel and gasoline prices unchanged since mid-March last year.

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