India Hikes Fuel Tax to Boost Income, Keeps Pump Prices Flat (1)

A slump in crude oil prompted India to increase taxes on diesel and gasoline, a move that will help the government shore up its revenue.

There will not be any change in retail fuel prices as local refiners will absorb the hike, Oil Minister Hardeep Puri told reporters. “They are in the pink of health. They will do well,” he said in New Delhi on Monday.

The world’s third-largest oil consumer increased its special additional excise duty on gasoline to 13 rupees (15 cents) a liter from April 8, against 11 rupees now, The duty on diesel will be raised ...