Petrol, diesel prices get cheaper as govt reduces excise duty, states cut VAT

Prime News, National (New Delhi), November 4:- Petrol and Diesel will be cheaper from November 4 (Thursday) as the government on Wednesday announced a reduction in the excise duty by Rs 5 and Rs 10 respectively. Following the Centre’s move, several states including Assam, Tripura, Karnataka, Goa, Uttarakhand and Manipur have also announced a reduction in VAT to bring down fuel prices in their respective states.

The new fuel prices will be effective from Thursday (today) while in Tripura, new petrol and diesel prices are effective from today.

States including Assam, Tripura, Karnataka, Goa and Manipur have reduced petrol, diesel prices by Rs 7 while Uttarakhand has reduced VAT by Rs 2.

Meanwhile, Uttar Pradesh said that after reduction of taxes /duties by the Centre and the state, the prices of Diesel and Petrol here will go down by Rs 12 per litre.

After the Centre reduced excise duty, Union Petroleum Minister Hardeep Singh Puri said, “the states should add to this celebration by reducing VAT on fuel to give further relief to consumers.”

The decision of the Centre to reduce excise duty on petrol & diesel also sets the template for the state governments to follow suit. Concrete action from states will lead to a further reduction in fuel price & more relief to consumers, Union Minister Dharmendra Pradhan said.

The reduction in excise duty on diesel will be double that of petrol and will come as a boost to the farmers during the upcoming Rabi season. States urged to reduce VAT on petrol and diesel to give relief to consumers, government sources said on Wednesday.

In recent months, crude oil prices have witnessed a global upsurge. Consequently, domestic prices of petrol & diesel had increased in recent weeks exerting inflationary pressure. The world has also seen shortages and increased prices of all forms of energy, the finance ministry said. (MR, Inputs: Agencies).

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