On the eve of Diwali, the Centre announced a cut in excise tax on petrol and diesel, providing respite to consumers. The excise duty on petrol will be dropped by Rs 5 and that on diesel will be slashed by Rs 10, with the revised rates taking effect today.
Meanwhile, the Ministry of Finance stated that the drop in excise duty on gasoline and diesel will provide the economy with a boost.
‘The reduction in excise duty on Petrol and Diesel will also boost consumption and keep inflation low, thus helping the poor and middle classes. Today’s decision is expected to further spur the overall economic cycle,’ read the statement released by the Finance Ministry on Wednesday.
It further added that ‘the reduction in excise duty on diesel will be double that of petrol. 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.’