Heavy reduction in excise duty will reduce the prices of petrol and diesel

New Delhi. The Narendra Modi government at the Center has given great news to the country on the eve of Diwali. Actually, the Modi government has announced that a record reduction in excise duty on petrol and diesel is being done from tomorrow i.e. 4 November 2021. The Finance Ministry said that a big relief of Rs 5 is being given in excise duty on petrol and Rs 10 on diesel. The ministry said that this will give a big relief to the retail customers from the skyrocketing prices of both the fuels.

Petrol prices in Delhi will come down from the current Rs 110.04 to Rs 105.04 per liter after the implementation of excise duty cuts at 6 am on Diwali i.e. 4th November 2021. At the same time, the price of diesel will be reduced to Rs 88.42 per liter from the current Rs 98.42. The Finance Ministry said that the Central Government has taken an important decision of record reduction in Central Excise Duty. Now the prices of petrol and diesel will be reduced in the same proportion. At the same time, according to sources associated with the oil industry, the government will suffer a revenue loss of Rs 8,700 crore every month due to reduction in excise duty on the basis of consumption during April-October 2021. On this basis, the government will suffer a revenue loss of Rs 1 lakh crore in a year.

At present, the central government levies excise duty of Rs 32.90 on petrol and Rs 31.80 per liter on diesel. After this decision of the government, the excise duty on petrol will be reduced to Rs 27.90 and on diesel to Rs 21.80. Along with this, the Center has also appealed to the state governments to reduce VAT on petrol and diesel so that the common people can get relief from inflation.

According to the Modi government, farmers will benefit the most due to reduction in excise duty on diesel. Actually, farmers are about to start preparing for sowing of Rabi crop. At the same time, due to the reduction in the price of diesel, the transportation cost of all the goods will come down and the common consumer is also expected to get some relief. The central government has admitted that due to the increase in the price of petrol and diesel, inflation has increased.
There is also a reduction in fuel supply around the world. Due to this, the price of crude oil has increased. According to the Modi government, it has been ensured that there is no shortage of fuel like petrol and diesel in the country and its supply remains uninterrupted. The Center said that the economy is witnessing improvement and has decided to reduce excise duty on petrol and diesel to speed up economic activities. This will increase consumption and control inflation.