Economics

India Raises Levies on Fuel as Deficit Set to Breach Target

Employees wearing PPE refuel a vehicle at a gas station in New Delhi, India, on April 27. 

Photographer: T. Narayan/Bloomberg
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India increased a special tax on gasoline and diesel as pressure builds on Prime Minister Narendra Modi’s government to bridge a ballooning budget deficit.

Additional levies on gasoline were raised by 10 rupees ($0.13) a liter effective Wednesday and that on diesel by 13 rupees, according to government statements. Pump prices will, however, not change, the government said.