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Centre cuts excise duty on petrol, diesel – Times of India

NEW DELHI: In a big relief to consumers ahead of Diwali, the government on Wednesday announced reduction in excise duty on petrol and diesel.
Excise duty on petrol has been reduced by Rs 5 and that on diesel has been cut by Rs 10, the Centre said in an official release.
Consequently, petrol and diesel are set to become cheaper. The reduced prices will come into effect from November 4.
“The 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,” the government said.
States have also been urged to reduce value added tax (VAT) on petrol and diesel to give relief to consumers.
Fuel prices have been soaring to record highs since the past few months.
Petrol prices have increased on 28 of the previous 36 days, taking up its pump price by Rs 8.85 per litre.
In Delhi, a litre of petrol costs Rs 110.04, while diesel is priced at Rs 98.42 per litre.
Similarly, petrol costs Rs 115.85 per litre, while diesel is priced at Rs 106.62 per litre in Mumbai, the highest among all metros.
Rising prices of petrol and diesel was creating inflationary pressure on the economy, as a result of a global upsurge in crude oil rates.
“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 to meet our requirements,” the government said.
It believes that the reduction in excise duty on petrol and diesel will boost consumption and keep inflation rate low, thereby helping the poor and middle class of the population.
The Centre had raised excise duty by Rs 13 per litre on petrol and Rs 16 on diesel between March-May 2020 when oil prices crashed owing to the pandemic. The states had also followed suit with consequent rise in VAT.
The revision had raised excise duty by 65 per cent on petrol from Rs 19.98 to Rs 32.98 a litre and 79 per cent on diesel from Rs 15.83 to Rs 28.35.