Prime News, National, Fuel, Finance, New Delhi, November 4:- After the Centre’s decision to cut excise duty on petrol and diesel, several BJP and NDA-ruled states announced to reduce Value-Added Tax (VAT) on fuel to further provide relief to consumers. The Centre on Wednesday (November 4)announced to slash the excise duty on petrol by Rs 5 and that of diesel by Rs 10. The Centre had also urged the States to reduce the VAT on petrol and diesel.
Hours after the announcement, governments of several BJP-ruled states including Uttar Pradesh, Gujarat, Assam, Goa, Tripura, Karnataka, Uttarakhand, Himachal Pradesh, Manipur and Bihar declared to reduce VAT on fuel.
In Mysuru on Thursday (November 4), the price of petrol per litre is Rs 107.11 and diesel per litre is Rs 91.54.
The Finance Ministry said the prices of petrol and diesel will come down accordingly. The reduction in excise duty on diesel will be double that of petrol. The ministry said the farmers have kept the economic growth momentum going even during the lockdown phase through their hard work. It said the massive reduction in excise on diesel will come as a boost to the farmers during the upcoming Rabi season.
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.
The Finance Ministry said, “The world has also seen shortages and increased prices of all forms of energy. The government has made efforts to ensure that there is no energy shortage in the country.”
The ministry said, “The reduction in excise duty on Petrol and Diesel will also boost consumption and keep inflation low, thus helping the poor and middle classes. The decision is expected to further spur the overall economic cycle.”
The ministry has also urged states to commensurately reduce Value Added Tax (VAT) on petrol and diesel to give relief to consumers. (Inputs: Agencies, MR, NGB)