The government late on Tuesday increased its taxes and duties on petrol and diesel instead of passing on the benefit of lower crude oil prices to consumers, as it moves to raise revenues in an economy that ground to a halt in the coronavirus crisis.
Taxes and duties on petrol and diesel were increased by Rs 10 per litre and Rs 13 per litre, respectively, but the Central government said in a statement that local pump prices will not be affected.
India pegs retail prices of petrol and diesel to moves in the international markets, where prices of fuel have declined substantially amid the slump in global crude oil demand.
Some state governments earlier on Tuesday sharply raised taxes on alcohol in a bid to bolster their own coffers that have also taken a hit amid the nationwide lockdown that began on March 25.
India reported more than 3,900 new infections of the novel coronavirus on Tuesday marking its highest single day increase in cases, and taking its tally to 46,711. The death toll in India stood at 1,583 people, the health ministry said.