The government today took a significant decision of reducing Central Excise Duty on Petrol and Diesel by Rs. 5 and Rs. 10 respectively from tomorrow. After this reduction of excise duty the prices of petrol and diesel will come down accordingly. The reduction in excise duty on diesel will be double that of petrol. The step, government claims, will benefit Indian farmers, who, through their hard work, kept the economic growth momentum going even during the lockdown phase. 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,” reads the official statement of the government.
In the past few months, the diesel and petrol prices have been increasing very second day, creating difficulties for the people. For the first time in the history, the price of the petrol crossed the three digit. The cost of one litre of petrol in Delhi stands at Rs. 110.04 per litre and of diesel at Rs. 98.42 per litre.
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.
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