ECONOMY

In a Diwali gift, Modi government cuts Excise Duty on petrol & diesel

The Union government announced Excise Duty reduction on petrol and diesel on Wednesday on the eve of Diwali. A Ministry of Finance release informed today that the Excise Duty on petrol and diesel would be reduced by Rs 5 and Rs 10 respectively from Thursday, and the prices of petrol and diesel would come down accordingly. 


In the press release, the Finance Ministry stated that crude oil prices had witnessed a global upsurge in the recent months. As a consequence, domestic prices of petrol and diesel had increased in recent weeks and these factors were exerting inflationary pressure.


The ministry said that the reduction in Excise Duty on diesel would be double that of petrol and would come as a boost to the farmers during the upcoming Rabi season. 


Furthermore, the Centre urged States to reduce Value-Added Tax (VAT) on petrol and diesel to give relief to consumers.

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