On eve of Diwali, the Centre has announced excise duty reduction on petrol and diesel to be reduced by Rs 5 and Rs 10 starting from Thursday.
“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. States urged to reduce VAT on petrol & diesel to give relief to consumers,” news agency ANI quoted government sources as saying.
The sudden deduction on petrol and diesel prices by the ruling Bhartiya Janata Party government has created astonishment everywhere, with social media users saying that the Centre has reduced the prices due to the effect of the ongoing by-polls.
One journalist from the Indian Express CL Ramakrishnan tweeted, “Bypoll Results Impact. BJP learning lesson the hard way,” tagging a news report by ANI.
Amid record-high fuel prices, this reduction of Rs 5 per litre cut on petrol and a Rs 10 per litre cut on diesel is the first cut in central excise duties in over three years.
Ministry of Finance has that in recent months, crude oil prices have witnessed a global upsurge. “Consequently, domestic prices of petrol & diesel had increased in recent weeks exerting inflationary pressure. The world has also seen shortages and increased prices of all forms of energy.”
Indian government has made efforts to ensure that there is no energy shortage in the country and that commodities such as petrol & diesel are available adequately to meet our requirements, it said.
To give a further fillip to the economy, the ministry said that the Central government has decided to significantly reduce excise duty on diesel & petrol. The reduction will also boost consumption & keep inflation low, thus helping the poor & middle classes.
(Inputs from ANI)