New Delhi: The Central government today cut the excise duty on petrol and diesel by Rs. 5 and Rs. 10 respectively.
The prices of petrol & diesel will thus come down accordingly. The new prices will come into effect from tomorrow, the Ministry of finance said in a statement.
“The reduction in excise duty on diesel will be double that of petrol and will come as a boost to the farmers during the upcoming Rabi season,” the Ministry said adding that Indian farmers have, through their hard work, kept the economic growth momentum going even during the lockdown phase.
The central government also urged states to commensurately reduce VAT on Petrol and diesel to give relief to consumers, the ministry said in a release.
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 Ministry said.
“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,” it said.
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 statement read.
“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,” the Ministry said.