Petrol prices reduced by rs 57635 across the country, diesel became cheaper by rs 1288

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Petrol prices reduced by rs 57635 across the country, diesel became cheaper by rs 1288

New Delhi, Nov 4 (PTI) Petrol prices across the country on Thursday increased by Rs 5.7 to Rs 6.35 and diesel by Rs 11.16 on Thursday as oil companies passed on the benefits to their customers after a record cut in excise duty rates by the central government. There was a reduction from Rs. 12.88 to Rs.

The Central Government on Wednesday cut excise duty on petrol and diesel by Rs 5 and Rs 10, respectively, to give some relief to the common people from inflation.

Since the local sales tax or VAT (value added tax) is levied by the states not only on the base price but also on the excise duty levied by the Centre, there has been a real significant reduction in fuel prices.

According to the price notification issued by the public sector oil companies, the price of petrol in Delhi was cut by Rs 6.07 per liter and diesel by Rs 11.75 per liter.

The lowest cut in petrol prices was in Dadra and Nagar Haveli, where the price declined by Rs 5.7. Rajasthan saw the maximum reduction of Rs 6.35 per liter.

In terms of diesel, Chennai saw the lowest reduction of Rs 11.16 per liter and Odisha the highest at Rs 12.88 per liter.

VAT rates vary from state to state, leading to differences in fuel rates.

Apart from this, about half a dozen BJP-ruled states announced reduction in VAT, but till the filing of the news, only four states had issued a formal notification in this regard.

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The reduction in VAT resulted in an additional reduction of Rs 7 per liter in both petrol and diesel prices in Puducherry.

In Goa, there was an additional cut of Rs 5.47 per liter on petrol and Rs 4.38 per liter on diesel.

In Gujarat too, there was an additional cut of Rs 5.65 per liter on petrol and Rs 4.32 per liter on diesel. Petrol became cheaper by 81 paise per liter in Uttarakhand due to VAT cut.

Industry sources said Uttar Pradesh, Karnataka, Tripura and Bihar have also announced reduction in VAT, but no formal notification was issued till Thursday morning and hence no additional price cut.

The cut in excise duty announced on Wednesday night is the biggest ever. With this, a part of the increase in taxes on petrol and diesel by Rs 13 and Rs 16 per liter respectively between March 2020 and May 2020 has been withdrawn.

The then increase in excise duty had pushed the central tax on petrol to an all-time high of Rs 32.9 per liter and that on diesel at Rs 31.8 per litre.

This announcement made on the eve of Diwali will help in bringing down the skyrocketing fuel prices and will also bring some relief to the common man who is suffering from inflation.

“The Government of India has taken an important decision to reduce the central excise duty on petrol and diesel by Rs 5 and Rs 10 respectively from tomorrow. This will bring down the prices of petrol and diesel,” the Finance Ministry said in a statement.

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The reduction in excise duty was carried out after retail rates across the country hit record highs following a steady rise in international oil prices. The continuous increase in fuel prices was strongly criticized by the opposition parties. Especially the Congress criticized the government and demanded the withdrawal of excise duty.

Based on the consumption data for April-October, the cut in excise duty will result in a revenue loss of Rs 8,700 crore per month to the government. According to industry sources, this will have an impact of over Rs 1 lakh crore on an annual basis. Whereas for the rest of the current financial year, the impact will be Rs 43,500 crore.

Motorists will get relief from reduction in excise duty. This will be the biggest relief for trucks and the agriculture sector, which use diesel the most.

According to the statement, the farmers, with their hard work, maintained the economic growth momentum even during the ‘lockdown’ and the drastic reduction in excise duty on diesel will give them a boost during the upcoming Rabi season.

In recent months, crude oil prices have seen a jump globally. This has led to an increase in domestic prices of petrol and diesel in recent weeks, adding to inflationary pressures.

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