In a big gift to the people, the central government has slashed the excise duty on petrol and diesel. Consumers can get a relief of Rs 10 on diesel and Rs 5 on petrol. The new rates will come into effect from Thursday.
States have also been urged to reduce VAT on petrol and diesel to give relief to consumers. The announcement from the government comes on the eve of Diwali.Â
“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. The reduction in excise duty on petrol and diesel will boost consumption and keep inflation low, which will help the poor and middle class, it added. Today’s decision is expected to give more momentum to the entire economic cycle, said the government. In order to give relief to the consumers, states have also been appealed to reduce VAT on petrol and diesel,” a statement from the Ministry of Finance read.
The ministry added that crude prices have increased globally and the world has also seen shortages as well as increased prices of all forms of energy.
“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 statement added.
The reduction in diesel prices will be a big relief for the farmers during the upcoming Rabi season. “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,” the government said.
