States have also been urged to reduce VAT on petrol and diesel to provide relief to consumers.
The central government has announced a reduction in excise duty on petrol and diesel by ₹5 and ₹10 per liter, respectively, with effect from November 4.
The Union Finance Ministry said on 3 November that the cuts will “boost consumption and keep inflation low, helping the poor and middle classes”, as well as providing relief to states to ‘reduce VAT’ on petrol and diesel. solicited. to consumers.
“Recent months have seen a global jump in crude oil prices. As a result, domestic prices of petrol and diesel have increased under inflationary pressures in recent weeks. The world has faced all kinds of energy shortages and energy shortages,” the ministry said. Have also seen increased prices.” .
Arguing that the excise duty on diesel has been reduced twice as much as on petrol, the ministry said the move would help farmers especially in the upcoming rabi season. “Indian farmers, through their hard work, maintained the momentum of economic growth even during the lockdown phase…,” it noted.
Petrol and diesel prices are hitting record highs every other day and the government has so far claimed that the charges levied on them are helping fund the COVID-19 vaccination campaign and other welfare measures.
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