Centre announces reduction in excise duty on petrol, diesel

New Delhi/Bhubaneswar: In what could be a gift for people ahead of Diwali, the Government of India today announced a cut in excise duty on petrol and diesel.

The Finance Ministry said the excise duty on petrol and diesel has been reduced by Rs 5 and Rs 10, respectively. The new reduced fuel rates will come into effect tomorrow.

It is expected that the reduction in excise duty on diesel will benefit the farming community during the upcoming Rabi season.

The Centre has also urged States to cut Value-Added Tax (VAT) on petrol and diesel.

The Finance Ministry, in a statement on Wednesday night, a day before Diwali, said: “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.”

As per the statement, the Centre 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 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.”