Excise duty on petrol and diesel to be reduced by Rs. 5 and Rs. 10 respectively from tomorrow
States urged to reduce VAT on Petrol & Diesel
New Delhi: The Union Government today announced reducing Central Excise Duty on Petrol and Diesel by Rs. 5 and Rs. 10 respectively with effect from tomorrow. It said prices of petrol and diesel will thus come down accordingly, and urged States to commensurately reduce VAT on Petrol and diesel to give relief to consumers.
The reduction in excise duty on diesel will be double that of petrol to benefit the farmers during the upcoming Rabi season.
The Finance Ministry said that the rise in domestic prices of petrol and diesel had increased in recent months exerting inflationary pressure because of the global upsurge in crude oil prices. “The world has also seen shortages and increased prices of all forms of energy. 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,” the Ministry stated.
The Ministry stated that the reduction in the excise duty of fuel will 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,” it stated.
– global bihari bureau
