Government hikes excise duty on diesel and petrol

India expects to raise around 60 billion rupees ($975 million) from a hike in excise duties on petrol and diesel and the money will partly cover a shortfall in revenue collection so far this fiscal year, a finance ministry source said on Thursday.

Earlier, the government has raised excise duty by 1.50 rupees a litre each for the two fuels.

"Excise duty on petrol and diesel has been hiked to partly cover shortfall in tax collections," a senior finance ministry official told Reuters on condition of anonymity as he is not authorised to speak to the media.

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