‘Out of fear’: Priyanka Gandhi on Centre’s decision to cut excise duty on fuel

The Congress leader tweeted, ‘This is a decision taken out of fear, not from heart. The recovery is to answer the loot of the government in the coming elections.”

Bending under pressure, the government on Wednesday cut excise duty on petrol and diesel by a record ₹5 more ₹10 per liter to help bring down the rates from their all-time high.

The reduction in excise duty is effective from November 4 when the price of petrol will be reduced from the current rate ₹110.04 per liter in Delhi ₹105.04. Diesel rates will come down ₹98.42 per liter to ₹88.42.

“The Government of India has taken an important decision to reduce the Central Excise Duty on Petrol and Diesel. ₹5 more ₹10 (ex liter) respectively from yesterday. Thus the prices of petrol and diesel will come down,” the finance ministry said in a statement.

This is the highest ever cut in excise duty and a part of it has been withdrawn ₹13 more ₹The 16 per liter increase in taxes on petrol and diesel between March 2020 and May 2020 affects consumers to avoid a sharp fall in international oil prices.

That hike in excise duty took central taxes on petrol to their highest level. ₹32.9 per liter and that on diesel ₹31.8 liters.

Petrol price cut on Thursday ₹6.07 per liter and diesel price ₹Oil companies reduce excise duty rates to consumers as of 11.75 in Delhi.

By how much did the government cut excise duty on petrol on Wednesday, bowing to pressure? ₹5 per liter and that on diesel ₹10 per liter to provide relief to consumers suffering from record-high retail fuel prices. Since states levy local sales tax or VAT not only on the base price but also on the excise duty levied by the Centre, the overall incidence of reduction in prices is high.

petrol will be expensive ₹103.97 per liter in Delhi ₹110.04 per litre, as per the price notification of the state-owned fuel retailers.

Diesel rates will be reduced accordingly ₹86.67 per liter ₹98.42 per liter.