Petrol and Diesel Price Cut: On eve of Diwali on Wednesday, the Government of India has announced an excise duty reduction on petrol and diesel. A Ministry of Finance release informed that the excise duty on petrol and diesel will be reduced by Rs 5 and Rs 10 respectively from Thursday, and the prices of petrol and diesel will come down accordingly.
In the press release, finance ministry stated that crude oil prices have witnessed a global upsurge in the recent months. As a consequence, domestic prices of petrol and diesel had increased in recent weeks and these factors were exerting inflationary pressure.
▪️ Government announces Excise Duty reduction on Petrol and Diesel on the eve of Diwali
▪️ Excise duty on Petrol and Diesel to be reduced by Rs. 5 and Rs. 10 respectively from tomorrow
▪️ Prices of Petrol and Diesel will come down accordingly
— PIB India (@PIB_India) November 3, 2021
The ministry said that 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.
Furthermore, it urged states to reduce VAT on petrol and diesel to give relief to consumers.
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Petrol and Diesel Price Cut — Govt of India’s Full Press Note
“Government of India has taken a significant decision of reducing Central Excise Duty on Petrol & Diesel by Rs. 5 and Rs. 10 respectively from tomorrow. Prices of petrol & diesel will thus come down accordingly.
The reduction in excise duty on diesel will be double that of petrol. The Indian farmers have, through their hard work, kept the economic growth momentum going even during the lockdown phase 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 increased 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 to meet our requirements.
Driven by the enterprising ability of India’s aspirational population, the Indian economy has witnessed a remarkable turnaround post the COVID-19 induced slowdown. All sectors of the economy – be it manufacturing, services or agriculture – are experiencing significant upward economic activity.
To give a further fillip to the economy, the Government of India has decided to significantly reduce the excise duty on diesel and petrol.
The reduction in excise duty on Petrol and Diesel will also boost consumption and keep inflation low, thus helping the poor and middle classes. Today’s decision is expected to further spur the overall economic cycle.
States are also urged to commensurately reduce VAT on Petrol and diesel to give relief to consumers.”