Diwali Bonanza! Excise duty on petrol, diesel slashed by up to Rs 10

India’s central government announced a cut in excise duty on petrol and diesel on Wednesday (November 3). The excise duty on petrol and diesel has been reduced by Rs 5 and Rs 10, respectively, by the government. The decision, which was made on the eve of Diwali, would take effect the next day (November 4).

The price of petrol and diesel in cities and towns across India would be reduced as a result of the government’s price reduction announcement.

Farmers will benefit from the significant reduction in diesel costs as they prepare for the forthcoming Rabi season. As a result, the excise tax cut on diesel will be double that of petrol.

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

The central government made the decision to lower petrol and diesel prices after states agreed to lower fuel VAT to help customers who had been paying excessive costs in recent weeks.

Prime Minister Narendra Modi’s Diwali gift is a cut in excise charge on fuel and diesel throughout the festive season. Experts predict that the decision will provide the economy with a boost by marginally increasing consumption.

Prices for petrol and diesel might be further lowered if state governments also reduced the fuel’s VAT. Several neighbouring countries already levy a hefty VAT on petrol and diesel.