Diwali surprise: Petrol, diesel to be cheaper from today

In a relief to consumers ahead of Diwali, the Centre on Wednesday announced a reduction in excise duty on petrol and diesel.

Prices will be reduced by Rs 5 per litre on petrol and Rs 10 per litre on diesel from Thursday.

The finance ministry said the Rs 10 cut on diesel will come as a boost to farmers ahead of rabi crop sowing. The lowering of prices of transport fuel is also expected to keep the general price rise in essential commodities under check.

It also urged states to reduce local taxes on the two fuels to give further relief to consumers.

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On Wednesday, petrol price in Bangalore stood at Rs 113.93 a litre, while diesel was available at Rs 104.50 a litre. In Delhi, petrol sold at Rs 110.04 per litre while diesel was available for Rs 98.42. In Mumbai, petrol was retailing at Rs 115.85 while diesel cost Rs 106.62.

Petrol is selling costliest in Sriganganagar in Rajasthan at Rs 122 per litre.

Excise duty on petrol was hiked from Rs 19.98 per litre to Rs 32.90 last year. This was done to recoup gain arising from international oil prices which came down to multi-year low after Covid related shutdown impacted demand. On diesel, the duty was hiked to Rs 31.80.

Official data showed Centre’s excise collection on petroleum products rose 33 per cent to Rs 1.71 lakh crore in the first six months (April-September) of the current fiscal when compared with 2020-21 and 70 per cent more than pre-Covid levels.

Transport fuel prices vary from state to state depending on local taxes and freight charges.

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“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,” an official statement said.

“The 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,” the ministry said.

The reduction in duty comes ahead of elections in seven states, including the crucial Uttar Pradesh polls early next year.

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