On the eve of Diwali, the Center on Tuesday announced reduction in excise duty on petrol and diesel. Excise duty on petrol will be reduced by Rs 5 and on diesel by Rs 10. The Center has said that the new prices will be effective from Thursday. This comes at a time when petrol and diesel prices are at a record high across the country.On Wednesday, the price of petrol in Delhi is Rs 110.04 per liter while diesel is available for Rs 98.42. Petrol in Mumbai is being sold at Rs 115.85 and diesel at Rs 106.62. Announcing the announcement, the Finance Ministry in a press release said, “The reduction in excise duty on diesel will be double that of petrol. Indian farmers, through their hard work, have maintained the pace of economic growth even during the lockdown phase and the drastic reduction in excise duty on diesel will come as a boost to the farmers during the upcoming Rabi season.”
It said, “The Government of India has made efforts to ensure that there is no shortage of energy in the country and that commodities like petrol and diesel are sufficiently available to meet our needs. Driven by the entrepreneurial potential of India’s aspiring population, the Indian economy has witnessed a remarkable turnaround post the COVID-19 induced slowdown. All sectors of the economy – be it manufacturing, service or agriculture – are experiencing significant economic activity. To give further impetus to the economy, the Government of India has decided to significantly reduce the excise duty on diesel and petrol.
The Center further said that the move will boost consumption and keep inflation low, helping the poor and middle class. It also urged states to reduce VAT on petrol and diesel to provide relief to consumers. Auto fuel prices in the country vary from state to state depending on local taxation (VAT) and freight charges. Apart from this, the central government levies excise duty on auto fuels. In global markets, oil prices fell on Wednesday, as industry data pointed to a large build-up in crude and distillate stocks in the United States, the world’s biggest oil consumer, and There has been increased pressure on OPEC to increase supplies.