New Delhi: In a major relief to the common man ahead of Diwali, the Centre on Wednesday announced to cut excise duties on petrol and diesel by Rs 5 and Rs 10 respectively.
Prices of petrol and diesel will thus come down accordingly from tomorrow.
"Government of India has taken a significant decision of reducing Central Excise Duty on Petrol and Diesel by Rs 5 and Rs 10 respectively from tomorrow. Prices of petrol and diesel will thus come down accordingly," Finance Ministry said.
Fuel prices have been on a high and breaching all previous records with opposition political parties mounting pressure on the government to cut taxes on the two motor fuels.
Petrol in Delhi is currently being sold at Rs 110.04 per litre, while diesel at Rs 98.42 per litre.
While announcing the duty cut on petrol and diesel, the government said that reduction in excise duty on petrol and diesel will also boost consumption and keep inflation low, thus helping the poor and middle classes.
"Today’s decision is expected to further spur the overall economic cycle. States are also urged to commensurately reduce VAT on Petrol and diesel to give relief to consumers," it said.
The government cited global upsurge in crude oil prices for elevated prices of the two key fuels.
"In recent months, crude oil prices have witnessed a global upsurge. Consequently, domestic prices of petrol and diesel had increased in recent weeks exerting inflationary pressure. The world has also seen shortages and increased prices of all forms of energy," the official statement said.
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," it added. (UNI)