Diwali Gift! Government slashes central excise duty on fuel; petrol cheaper by Rs 5, diesel by Rs 10

On the eve of Diwali, the government of Wednesday has slashed the excise duty in the fuel price by Rs 5 on petrol and Rs 10 on diesel, Finance Ministry said in a release.

According to the official statement, “Government of India has taken a significant decision of reducing Central Excise Duty on Petrol and Diesel by Rs 5 and Rs 10 respectively from tomorrow. Prices of petrol & diesel will thus come down accordingly.”

See Zee Business Live TV Streaming Below:

The central government has also urged states to commensurately reduce VAT (Value Added Tax) on Petrol and diesel to give relief to consumers.

The release pointed out that the reduction in central excise duty on fuel prices will act as boost to the farmers during the upcoming Rabi season. 

The ministry said in a statement, “The reduction in excise duty on petrol and diesel will also boost consumption and keep inflation low, thus helping the poor and middle classes, moreover, it is expected to further spur the overall economic cycle.”

In recent months, crude oil prices have witnessed a global upsurge. Brent lately had breached $ 84 per barrel.

Amid the crude oil price surge, the domestic prices of petrol and diesel had increased in recent weeks exerting inflationary pressure, the government pointed in a release.

The ministry added, that the government 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 Indian economy has witnessed a remarkable turnaround post the COVID-19 induced slowdown driven by the enterprising ability of India’s aspirational population, the release said. “All sectors of the economy – be it manufacturing, services or agriculture – are experiencing significant upward economic activity.”