New Delhi, Jan-2 (KNN)  To fund its infrastructure development programme, the government has increased basic excise duty on petrol and diesel - both branded and unbranded by Rs 2 per litre with effect from today.

However, this duty will not affect the price of that customers pay while filling up petrol or diesel at petrol pumps owing to a fall in crude oil prices.

“In order to fund the ambitious infrastructure development programme of the Government, particularly the building of 15000 kms of roads, during current and next financial year, the Government has decided to increase basic excise duty on petrol and diesel (both branded and unbranded) by Rs 2 per litre. 

“Allocation of these resources to the road sector will also spur economic activity and employment generation arising from the road construction sector," an official release said yesterday.

There will be no change in other excise duty rates applicable to these commodities, it added.

According to media reports, this is the third time since November that the government has increased the duty, which has kept the fall in local fuel prices much smaller compared with international rates.  (KNN/ES)