Central Govt cuts excise duties on Petrol,Diesel after reaching sky high levels

The move is aimed to benefit the poor and the middle class, the Finance Ministry said in a statement

3 November 2021

Relief Finally

The excise duty on petrol and diesel will be reduced by ₹ 5 and ₹ 10 respectively from tomorrow, the government has announced on the eve of Diwali, aiming to provide relief to people reeling under the impact of spiralling fuel prices.

Prices of Petrol and Diesel will come down accordingly, sources said.

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 government said in an official statement.

States have been urged by the Centre to reduce value added tax (VAT) on both the fuels to give relief to consumers.

The Situation has been dire

The reduction in excise duty on fuel prices has been announced at a time when petrol and diesel prices have been touching all time highs across the country, crossing the ₹ 100 mark in all the major cities of the country, including the four metros.

While petrol prices have crossed the ₹ 100 mark in all the four metros, diesel prices too have gone past the coveted mark in three metro cities while it is at ₹ 98.42 per litre in the national capital.

In fact Petrol prices have risen by about ₹ 34 per litre in two years and ₹ 26 in a year on a steep climb in global oil prices and taxes. Diesel prices have increased by ₹ 29.5 per litre in two years and ₹ 25 in a year.