The central government on Tuesday hiked the excise duty on petrol by a steep Rs 10 per litre and that on diesel by Rs 13 a litre.
However, retail sale prices of fuel will not change on account of this increase in duties as the hike will be absorbed by oil marketing companies. These duty rate changes will come into effect from May 6.
The hike in duty has taken away the gains from falling global crude oil prices. Last month, benchmark Brent crude oil dropped to as low as $18.10 (around Rs 1,370) per barrel -- the lowest since 1999 -- as the coronavirus pandemic wiped away demand and created large surpluses around the globe.
Prices have since rebounded to around $28 (Rs 2,119) a barrel.
(With inputs from agencies)