India, May 20 -- The government has limited the increase in petrol and diesel prices to 4.4 per cent, among the lowest rises seen across major economies, by reducing excise duty and directing public sector oil marketing companies to absorb a significant portion of the impact from soaring global crude oil prices.

According to official sources, public sector oil companies absorbed under-recoveries of around Rs 24,500 crore on petrol and diesel before implementing a cumulative price increase of Rs 3.91 per litre in two phases.

A senior official said the Centre incurred a revenue loss of nearly Rs 30,000 crore through excise duty reductions on petrol and diesel, while oil marketing companies absorbed losses of Rs 24,500 crore on transport ...