Petrol & Diesel To Get Cheaper, Excise Duty To Be Cut by Rs 5 & 10 Respectively

The pump price of petrol in Delhi had increased by 35 paise per litre to jump to Rs 109.69 on 1 November.

Excise duty levied on petrol and diesel will be reduced by Rs 5 and Rs 10 respectively.

(Photo: iStockphoto)

Daily commuters can heave a sigh of relief as the Government of India announced on Wednesday, 3 November, that excise duty levied on petrol and diesel will be reduced by Rs 5 and Rs 10 respectively from Thursday, 4 November, on the eve of Diwali.

As per government sources quoted by news agency ANI, “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 are urged to reduce VAT on petrol and diesel to give relief to consumers.”

After Tuesday's Increase in Price, Relief on Wednesday

It may be noted that while Wednesday saw no increase in prices of petrol and diesel, they had seen an increase on Tuesday, 2 November, the seventh consecutive day of the same, as global oil prices failed to relent. Diesel prices have increased on 30 out of the last 39 days.

Accordingly, the pump price of petrol in Delhi increased by 35 paise per litre to jump to Rs 110.04 a litre, while diesel prices remained at Monday's level of Rs 98.42 a litre, according to a price notification by state-owned fuel retailers.

In the financial capital of Mumbai, petrol prices had increased to Rs 115.84 per litre while diesel stood at Rs 106.63 a litre, the highest among all metros.

Boost to Indian Farmers, Says Ministry of Finance

The Ministry of Finance, while making the announcement, also said in a press release, "The Indian farmers have, through their hard work, kept the economic growth momentum going even during the lockdown phase and the massive reduction in excise on diesel will come as a boost to the farmers during the upcoming Rabi season."

Further, acknowledging the recent rise in crude oil prices globally, the Finance Ministry explained, "Consequently, domestic prices of petrol and diesel had increased in recent weeks exerting inflationary pressure. The world has also seen shortages and increased prices of all forms of energy."

States Asked To Reduce VAT on Fuel as Further Relief

Thanking Prime Minister Narendra Modi, Union Petroleum Minister Hardeep Singh Puri said in a tweet, "The states should add to this celebration by reducing VAT on fuel to give further relief to consumers."

Former Bihar Deputy Chief Minister (CM) Sushil Kumar Modi announced that there will be a further reduction of state Value Added Tax (VAT) by Rs 1.30 on petrol and Rs 1.90 Rs on diesel apart from the Rs 5 and Rs 10 reduction on excise duty.

The Bharatiya Janata Party (BJP) state governments in Assam, Tripura, Manipur, Karnataka, Gujarat, and Goa have announced that they will further reduce prices of petrol and diesel by Rs 7 per litre in their states, in addition to the Centre's relief.

• Uttarakhand CM Pushkar Singh Dhami said that the VAT on petrol would be reduced by Rs 2 per litre in the state, and Himachal Pradesh CM Jai Ram Thakur stated that his government too would reduce the VAT on petrol and diesel.

• The state governments of Uttar Pradesh and Haryana have announced that the prices of diesel and petrol in their states will be reduced by Rs 12 per litre.

• The Biju Janata Dal (BJD) government in Odisha has announced a reduction in VAT of Rs 3 each on petrol and diesel which will be applicable from midnight of 5 November.

• Bihar CM Nitish Kumar has announced reduction of VAT on petrol by Rs 3.20 per litre and on diesel by Rs 3.90 per litre in the state.

• The Arunachal Pradesh government has announced that the total fuel price reduction in the state (including both the relief by the Centre and the state government) will amount to Rs 10.20 per litre for petrol and Rs 15.22 per litre for diesel.

• Madhya Pradesh has announced a reduction of VAT on petrol and diesel by 4%.

What Will the Prices Come To Now in Metros?

Delhi

After the slash in excise duty, the price for petrol in Delhi will come down to approximately Rs 104 per litre, while the price for diesel will come down to approximately Rs 87 per litre.

Mumbai

In Mumbai, meanwhile, the price for petrol will come down to around Rs 110 per litre, while the price for diesel will come down to around Rs 94 per litre.

Kolkata

In Kolkata, the price for petrol will come down to around Rs 105 per litre, while the price for diesel will come down to around Rs 90 per litre.

Bengaluru

In India's 'silicon valley', Bengaluru, the price for petrol will come down to approximately Rs 108 per litre, while the price for diesel will hover around Rs 94 per litre after the slash in excise duty.

However, taking into account the slash in VAT by the Karnataka government, the price for petrol will be Rs 101 per litre, while it will be approximately Rs 87 for diesel.

Hyderabad

In Hyderabad, the price for petrol will come down to around Rs 109 per litre, while the price for diesel will come down to around Rs 97 per litre.

Ahmedabad

In Ahmedabad, the price for petrol will come down to around Rs 101 per litre, while the price for diesel will come down to around Rs 96 per litre.

Pune

In Pune, the price for petrol will come down to around Rs 110 per litre, while the price for diesel will come down to around Rs 94 per litre.

The government further stated:

"Driven by the enterprising ability of India’s aspirational population, the Indian economy has witnessed a remarkable turnaround post the COVID-19 induced slowdown. All sectors of the economy – be it manufacturing, services or agriculture – are experiencing significant upward economic activity."

Ministry of Finance, in a press release.

So, to give a further "fillip to the economy", the government has "decided to significantly reduce the excise duty on diesel and petrol."