The reduction in the price of petrol and diesel is much lower than what crude oil prices which fell to below USD 30 per barrel had warranted. The gains were taken away by the government which hiked the excise duty on petrol by 75 paise per litre and on diesel by Rs 2.

The excise duty hike, the government said, will not result in any increase in retail prices for consumers.

After the fourth reduction in rates in six weeks, petrol in Delhi will cost Rs 59.03 per litre with effect from last night as against Rs 59.35 per litre currently.

A litre of diesel will cost Rs 44.18 as opposed to Rs 45.03 presently, said Indian Oil Corp (IOC), the nation's biggest fuel retailer.

The excise duty hike, second this month and fourth since November 2014, would net the government an additional Rs 3,700 crore during the remainder of the fiscal year ending March 31.

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