Centre to cut excise duty on petrol by Rs 5, diesel by Rs 10 from tomorrow

Centre to cut excise duty on petrol by Rs 5, diesel by Rs 10 from tomorrow


In a significant decision, the Centre has announced a reduction in excise duty on Petrol and Diesel by Rs 5 and Rs 10 respectively, to be effective from tomorrow. The announcement comes at a time when petrol and diesel prices are at a record high across the country.

“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,” stated the circular.

States have also been urged to commensurately reduce VAT on Petrol and diesel to give relief to consumers.

On Wednesday, petrol price in Delhi stands at Rs 110.04 per litre while diesel is available for Rs 98.42. In Mumbai, petrol is retailing at Rs 115.85 while diesel costs Rs 106.62.

“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,” read the readout.

In the global market, oil prices fell on Wednesday as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world’s largest oil consumer, and as pressure mounted on OPEC to increase supply.

Auto fuel prices in the country differ from state to state depending on the local taxation (VAT) and freight charges. Apart from this, the central government charges an excise duty on auto fuels.



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