Mumbai: An increase of Rs 1.50 in excise duty on petrol and diesel will bring in additional revenue of Rs 1,100 crore per liter of fuel for the government this fiscal, India Ratings said today.

The decision to relax diesel price controls is expected to reduce oil subsidies by Rs 15,100 crore. He added, “The ongoing adjustment in global crude oil prices will also bring significant benefits to the government.”

He added that these additional revenues will be very useful in the first six months of FY2015, considering that there has been minimal growth in indirect tax revenues as of now and the budget deficit is leveraged at over 80%.

“The government has budgeted a 20% increase in indirect tax revenue for FY2015, the report said. /p The price of India’s crude oil basket fell to $78.92 per barrel on November 12 from $84.77 per barrel on October 30th.

Yesterday, the government increased excise duty, reducing the price of petrol and diesel by 1.50 rupees per liter, said to bring in an additional revenue of 13,000 crore rupees.

Petrol prices have fallen for six consecutive times since August due to the fall in international oil prices, with diesel prices falling twice last month.

The government said that the excise duty on regular or unbranded petrol has been increased to Rs 2.700 per liter starting from Rs 1.20 per liter and on unbranded diesel has been increased to Rs 2.966 per liter starting from Rs 1.466 per liter.

Petrol price has been increased from Rs 2.35 to Rs 3.85 per liter and diesel price has been increased from Rs 3.75 to Rs 5.25 per liter.

The immediate rise in petrol and diesel prices will lead to an increase in excise duty, but the expected decline will keep retail prices at roughly the same level.

The state-run oil company could also push for a review of fuel prices, scheduled for Saturday, making the whole exercise neutral for consumers.