Petrol price cut by Rs.5, diesel by Rs.10 as Center slashes excise duty
Just one day before the Diwali the Centre sweetened the Diwali celebrations by announcing that it will slash the excise duty rate on both Petrol, diesel fuels. This will thus bring down the retail rates.
The Centre has reduced excise duty by Rs.5 for petrol and Rs.10 for diesel. The new rates will be applicable from November 4.
In addition, the Centre has urged the state governments to commensurately reduce VAT on petrol and diesel.
The Finance Ministry issued a statement in which it 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.”
The world has also seen increased prices of all forms of energy. In the past couple of months, crude oil prices have witnessed a global upsurge. As a result, the domestic prices of petrol and diesel had increased in recent weeks exerting inflationary pressure.
Post COVID-19 the Indian economy witnessed a remarkable surge. All sectors of the economy – be it manufacturing, services, or agriculture – are experiencing significant upward economic activity.
The steep rise in crude oil cost resulted in the domestic price hike of both fuels. they were at their record high. Petrol had crossed the Rs.100 per litre mark in several cities, whereas diesel was not far behind. The exponential rise in transport fuels had raised concerns over a build-up of inflationary pressure which has even concerned the RBI.
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.
[With Inputs from IANS]
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