Festive cheer: Centre cuts excise on petrol by Rs5/ltr, diesel by Rs10

Tribune News Service

New Delhi, November 3

The Centre on Wednesday announced a reduction in the excise duty on petrol and diesel by Rs 5 and Rs 10, respectively, with effect from Diwali on Thursday.

The reduction in the duty would come as a boost to the farmers during the upcoming rabi season, said government sources while asking the states to reduce VAT on petrol and diesel as well.

In recent months, the crude oil prices have witnessed a global surge but the Centre and states did not reduce the taxes on diesel and petrol, leading to an almost-daily rise in prices. As a result, inflationary pressures has built up leading to price rise.

The reduction in the excise duty will also boost consumption and keep inflation low, thus helping the poor and middle classes.

Soon after the excise duty cut, the BJP-ruled states took a cue announcing further reduction in VAT on fuel cutting additional costs.

The Chief Ministers of Assam, Tripura, Himachal Pradesh, Karnataka, Uttarakhand and Goa made late Wednesday night announcements of “Diwali gift to people.”

Assam Chief Minister Himanta Biswa Sarma took the lead by announcing: “Heartening to learn about the Centre’s decision to reduce the excise duty on petrol and diesel. In consonance with the decision of PM Modi, I am pleased to announce that Assam Government will also reduce VAT on petrol and diesel each by Rs 7 with immediate effect.”

Tripura CM Biplab Deb tweeted, saying PM’s decision on reduction of excise duty on fuel was a welcome move. The Tripura Government has also decided to reduce petrol amp; diesel cost by Rs 7 from tomorrow.

Goa CM Pramod Sawant also said in addition to the Centre’s decision, the government of Goa would reduce an additional Rs 7 on petrol and Rs 7 on diesel, thereby reducing the price of diesel by Rs 17 per litre and petrol by Rs 12 per litre.

Karnataka CM Basvaraj Bommai said the state government had decided to reduce the price of diesel and petrol by Rs 7 per litre. “An estimated Rs 2,100 crore of state tax will be lost to the Treasury. The petrol price in the state is estimated at Rs 95.50 and the diesel estimate is Rs 81.50,” he said. Uttarakhand CM Pushkar Dhami and Himachal CM Jairam Thakur also announced similar VAT cuts.