Government cuts excise duty by Rs 5 on petrol and Rs 10 on diesel, fuel prices to come down accordingly
New Delhi, November 3, 2021
The Government today reduced the Central Excise duty on petrol and diesel by Rs 5 and Rs 10, respectively, with effect from tomorrow and the prices of the two automobile fuels will come down accordingly.
The decision, on the eve of Diwali, will come as a major relief for people who were reeling under the impact of rising fuel prices for the past several weeks.
"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," a press release from the Ministry of Finance said.
"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," the release said.
"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," the release said.
The Government said it had decided to significantly reduce the excise duty on diesel and petrol to give a further fillip to the economy.
According to it, 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," it said.
The Centre also urged States and Union Territories to commensurately reduce VAT on petrol and diesel to give relief to consumers.