Central government offers relief in fuel prices; urges states to reduce VAT

The government of India slashed the central excise duty on Petrol and Diesel by Rs. 5 and Rs. 10, respectively. The price reduction will be effective from November 4.

A press release said that the reducing diesel’s price benefits the farmers in the upcoming Rabi season.

While the crude oil price surged, and shortages were seen in all forms of energy in the world, the government had ensured that there was no such energy shortage in India, and there be an adequate supply of commodities such as petrol and diesel, the press release said.

Govt of India takes a significant decision of reducing Central Excise Duty on Petrol by ₹5 & ₹10 on Diesel from tomorrow. Prices of petrol & diesel will thus come down accordingly. States are also urged to commensurately reduce VAT on Petrol & diesel to give relief to consumers

— Ministry of Petroleum and Natural Gas (@PetroleumMin) November 3, 2021

Whether it be manufacturing, services, or agriculture, an increase in economic activity is seen, said the circular, adding that the price reduction in excise duty will further boost the economy.

The centre urged the states to commensurately reduce the VAT (Value Added Tax) and provide relief to the consumers.