NEW DELHI: The government has slashed excise duty on petrol and diesel by Rs 10 per litre, averting a pump price hike that had become necessary because of soaring global oil prices.

The cut in special additional excise duty on petrol from Rs 13 a litre to Rs 3 and the same on diesel from Rs 10 per litre to nil, will lead to an estimated revenue loss of Rs 1.75 lakh crore.

Alongside, the government brought back duties on export of diesel and aviation turbine fuel (ATF), according to a notification issued late on Thursday.