New Delhi: Petrol and diesel prices are to be hiked by Re one per litre each even as Government plans to slash excise duties on petroleum products to cushion the impact of surge in crude oil prices.

An announcement of hike in petrol and diesel prices is likely late in the evening today (Jun 15, 2004) and the revised price would be effective from midnight tonight.

Government also plans to cut excise duties on products but will leave the customs duty on crude oil unchanged till the Budget, sources said.

Petroleum Minister Mani Sankar Aiyar said an announcement would be made late in the evening as is the convention.

He, however, refused to elaborate on the quantum of price increase or duty cuts.

After the Cabinet meeting this morning, which approved the oil package including marginal hike in product prices and cut in duties, Aiyer held detailed discussions with officials of PSU oil companies.