New Delhi, April 7 -- The government on Monday announced that it has increased excise duty on petrol and diesel by Rs 2 each, with effect from Tuesday, but there will be no increase in the retail prices of the two fuels as oil prices have come down in the global market.

The lower crude oil prices will reduce the cost of production for oil refining and marketing companies such as Indian Oil and Bharat Petroleum and increase their retail margins. This will enable the government to raise more revenue from an excise duty hike without increasing the burden on consumers.

"The PSU Oil Marketing Companies have informed that there will be no increase in retail prices of petrol and diesel, subsequent to the increase effected in Excise Duty Rates ...