New Delhi: The Center has announced a temporary relief ahead of Diwali – fuel prices will come down in the country. The central government has announced a reduction in excise duty on petrol and diesel. With this, petrol will be reduced by Rs 5 per liter and diesel by Rs 10 per liter. The new price will be effective from midnight today.
On eve of #Diwali, Government of India announces excise duty reduction on petrol and diesel. Excise duty on Petrol and Diesel to be reduced by Rs 5 and Rs 10 respectively from tomorrow pic.twitter.com/peYP1fA4gO
— ANI (@ANI) November 3, 2021
As of May 5, 2020, the excise duty on petrol had gone up to Rs 37.38 per liter. It costs Rs 27.98 for diesel. Out of this, Rs 5 and Rs 10 were deducted respectively. The government’s decision comes amid nationwide protests. The Center has also asked the states to reduce VAT.
Achieved heavy profits.
In the first six months of this financial year, excise duty on petroleum products alone increased by 33 percent. This is compared to the previous year. According to the CAG report, revenue from excise duty during April-September 2021 was Rs 1.71 lakh crore. 1.28 lakh crore during the same period last fiscal.
Covid was followed by Rs 95,930 crore in the same period in 2019. After the introduction of GST, the Center has levied excise duty on petrol, diesel, natural gas, liquor, and tobacco. The Center is also proposing to shift petrol and diesel, which are subject to GST, in the event of rising prices.
Jump up, then down!
The fall comes after a record rise in fuel prices this year. In October, petrol was priced at Rs 7.82 per liter and diesel at Rs 8.71 per liter. The previous highest price increase was in February. 4.87 for petrol and Rs. 5.24 for diesel. Meanwhile, the lowest fuel prices were in the states, including Kerala, during the Assembly elections in April and later in September.
In September, diesel prices fell by Rs 1.11 per liter. After a hiatus, fuel prices began to rise on September 24. The price increase so far this year is 31% for petrol and 33% for diesel. During the last 10 months, petrol price has gone up by Rs 26.06 and diesel by Rs 25.91.