Priyanka Gandhi on Centre’s decision to cut excise duty on petrol, diesel

The Congress leader tweeted“This is a decision out of fear, not from the heart. The recovery is to answer the government’s loot in the coming elections,”  when loosely translated in English.

Buckling under pressure, the government on Wednesday cut excise duty on petrol and diesel by a record ₹5 and ₹10 per litre to help bring down rates down from their highest-ever levels.

The excise duty reduction is effective from November 4 when petrol price will come down from the current rate of ₹110.04 a litre in Delhi to ₹105.04. Diesel rate will be reduced from ₹98.42 per litre to ₹88.42.

“Government of India has taken a significant decision of reducing Central Excise Duty on petrol and diesel by ₹5 and ₹10 (pre litre) respectively from tomorrow. Prices of petrol and diesel will thus come down accordingly,” the finance ministry said in a statement.

This is the highest-ever reduction in excise duty and rolls back a part of the ₹13 and ₹16 per litre increase in taxes on petrol and diesel effected between March 2020 and May 2020 to avoid passing on to consumers the sharp fall in international oil prices.

That hike in excise duty had taken central taxes on petrol to their highest level of ₹32.9 per ltire and that on diesel to ₹31.8 a litre.

Petrol price on Thursday was cut by ₹6.07 per litre and diesel price by ₹11.75 in Delhi as oil companies passed on a record reduction in excise duty rates to consumers.

Buckling under pressure, the government had on Wednesday cut excise duty on petrol by ₹5 per litre and that on diesel by ₹10 a litre to give reprieve to consumers battered by record-high retail fuel prices. Since states charge local sales tax or VAT not just on the base price but also on the excise duty levied by the centre, the total incidence of price reduction is higher.

Petrol will cost ₹103.97 per litre in Delhi against ₹110.04 per litre, according to a price notification of state-owned fuel retailers.

Diesel rates accordingly will reduce to ₹86.67 per litre from ₹98.42 per litre.