Rising prices are burning a hole in the pockets of Indian households. The government has not been spared either. In an effort to lower fuel prices, the finance ministry cut the excise duty on petrol and diesel in early November and late May. While this may have provided some temporary relief to consumers, the hit to the government's coffers is more lasting, with the Centre's excise duty collections at Rs 61,228 crore for April-June, down 49 percent from what was collected in January-March. While collections are usually lower in the first quarter of the financial year, June quarter's mop-up was 10 percent lower compared to the same quarter last year.
