- Friday, April 19, 2024
By: Shubham Ghosh
THE Narendra Modi government on Wednesday (3) gave the countrymen a major relief on the eve of Diwali by reducing excise duties on petrol and diesel. The prices of the two fuel types had been consistently heading north, marring the festive mood in the country. After the government’s decision, petrol was set to be cheaper by Rs 5 (£0.049) and diesel by Rs 10 (£0.098), respectively. The new prices were set to be effective from Thursday (4).
Prices of petrol and diesel have reached record high across India, leaving the common man in deep worry over the repercussions on transportation costs and prices of daily essentials. Prices of both have crossed the three-figure mark in Indian rupees in most parts of the country.
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The Indian finance ministry issued a press release related to the matter, saying, “The reduction in excise duty on diesel will be double that of petrol. The Indian farmers have, through their hard work, kept the economic growth momentum going even during the lockdown phase and the massive reduction in excise on diesel will come as a boost to the farmers during the upcoming Rabi season.”
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It added, “The Government of India has made efforts to ensure that there is no energy shortage in the country and that commodities such as petrol and diesel are available adequately to meet our requirements.
Driven by the enterprising ability of India’s aspirational population, the Indian economy has witnessed a remarkable turnaround post the COVID-19 induced slowdown. All sectors of the economy – be it manufacturing, services or agriculture – are experiencing significant upward economic activity. To give a further fillip to the economy, the Government of India has decided to significantly reduce the excise duty on diesel and petrol.”
The government said the decision will boost consumption and keep inflation low, helping the poor and the middle classes. It also urged the states to commensurately reduce their taxes on petrol and diesel to give the consumers a relief. Auto fuel prices differ from state to state in India because of local taxation and freight charges. The central government also charges excise duty on auto fuel.
The Modi government’s move on reducing fuel prices also came a day after the BJP failed to meet expected results in bypolls held across India on October 30.
