New Delhi: The Central government of India, on Wednesday (November 3), announced a reduction in the excise duty on petrol and diesel. The government has slashed the excise duty on petrol and diesel by Rs 5 and Rs 10, respectively. The decision, that was taken on the eve of Diwali, will come into effect from tomorrow (November 4).
On eve of #Diwali, Government of India announces excise duty reduction on petrol and diesel. Excise duty on Petrol and Diesel to be reduced by Rs 5 and Rs 10 respectively from tomorrow pic.twitter.com/peYP1fA4gO
— ANI (@ANI) November 3, 2021
The prices of petrol and diesel in cities and towns across India will come down according to the reduction in prices as announced by the government.
The massive cut in diesel prices will provide respite to farmers ahead of the upcoming Rabi season. That’s why the reduction in excise duty on diesel will be double that of petrol. Also Read: Onion gets cheaper by up to Rs 12 per kg as centre releases 1.11 lakh tonnes of buffer stock
The decision to slash petrol and diesel rates has been taken by the Central government after the states to reduce VAT on fuel to give relief to consumers who have been paying inflated prices in the past few weeks. Also Read: Diwali Muhurat Trading 2021: Timings, significance and advice for investors
Can petrol, diesel prices dip further?
The reduction in excise duty on petrol and diesel amid the festive season can be seen as a Diwali gift from Prime Minister Narendra Modi. According to experts, the decision will give a further fillip to the economy by slightly improving consumption.
The prices of prices and diesel can be further eased if state governments also reduce the VAT imposed on the fuel. Currently, several opposite states charge a high VAT on petrol and diesel.
For instance, the charges on petrol in Delhi is about 30%, in Mumbai, the VAT is around 26% plus an additional Rs 10.12 / litre, in Kolkata is 25% or Rs. 13.12 per litre whichever is higher. Moreover, in Hyderabad, it is as high as 35.20% while in Congress-ruled Rajasthan, the charges are 36% plus Rs. 1,500/Kl.
In comparison, VAT rates in BJP ruled states such as Gujarat are just 20%. According to experts, it is high time that the opposition rule states match the centre’s positive decision and commensurately decreases VAT on both petrol and diesel to make fuel more affordable for the common man.
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