The government may hike excise duty on petrol and diesel before March with a view to raise revenue and stick to the fiscal deficit target of 3.9 per cent of the GDP.

“Fiscal deficit target of 3.9 per cent for the current fiscal is sacrosanct and the government has options, including further raising excise duty on petrol and diesel,” official sources said.

The Government has already raised excise duty on petrol and diesel, three times in quick succession.

“If global crude oil price provide room for further duty hike, it can be done. The government is open to idea as it will help boost revenue,” sources said.