In a Diwali bonanza by the Narendra Modi government, the excise duty on petrol and diesel has been slashed by Rs 5 and Rs 10, respectively. The decision will come into effect from Thursday (November 4).
In a statement, the Government of India also urged the states to reduce the VAT on petrol and diesel to further provide relief to the consumers.
The decision comes as a huge relief to the consumers as fuel prices across the country had sky-rocketed in the last few weeks following a global upsurge in crude oil prices. As of November 3, petrol price in Delhi stands at Rs 110.04 per litre, while that of diesel is Rs 98.42. In Mumbai, petrol costs Rs 115.85 and diesel Rs 106.62, according to the data on the Indian Oil Corporation’s website.
The government statement said, “Reduction in excise duty on diesel will be double that of petrol and will come as a boost to the farmers during the upcoming Rabi season.” It said that Indian farmers have, through their hard work, kept the economic growth momentum going even during the coronavirus lockdown and the “massive reduction in excise on diesel will come as a boost to the farmers during the upcoming Rabi season”.
In recent months, crude oil prices have witnessed a global upsurge. Consequently, domestic prices of petrol and diesel had increased in recent weeks exerting inflationary pressure. The world has also seen shortages and escalating prices of all forms of energy. The Government of India has made efforts to ensure that there is no energy shortage in the country and that commodities such as petrol and diesel are available adequately, according to the release.
The government hopes that the reduction in excise duty on petrol and diesel will boost consumption and keep inflation low, thereby helping the common man. “Today’s decision is expected to further spur the overall economic cycle,” the Centre stated.
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