Modi govt’s Diwali bonanza: Petrol excise rate cut by Rs 5, diesel by Rs 10
Economy

Modi govt’s Diwali bonanza: Petrol excise rate cut by Rs 5, diesel by Rs 10

The announcement will take effect from Thursday and help bring down the skyrocketing prices of fuel which have touched record highs.

   
Motorists approach a Bharat Petroleum filling station in Chennai | Representational image | Bloomberg

Motorists approach a Bharat Petroleum filling station in Chennai | Representational image | Bloomberg

New Delhi: Buckling under pressure, the government on Wednesday cut the excise duty on petrol and diesel by Rs 5 and Rs 10 respectively to bring down retail rates from record highs.

The announcement comes on the eve of Diwali which will help bring down the skyrocketing prices of fuel and provide some relief to the common man battling inflation.

“Government of India has taken a significant decision of reducing Central Excise Duty on Petrol & Diesel by Rs 5 and Rs 10 respectively from tomorrow. Prices of petrol and diesel will thus come down accordingly,” an official statement said.

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 them during the upcoming Rabi season, it added.

In recent months, crude oil prices have witnessed a global upsurge. Consequently, domestic prices of petrol and diesel had increased in recent weeks, exerting inflationary pressure, it said.


Also read: Diesel sales back at pre-pandemic levels as festive season drives up demand