On the eve of Diwali and a breather for consumers, the Narendra Modi government on Wednesday announced excise duty reduction on petrol and diesel by Rs 5 and Rs 10 respectively from tomorrow (November 4).

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According to the government, the reduction in excise duty on diesel will be double that of petrol and will come as a boost to the farmers during the upcoming Rabi season. Also, it urged states to reduce VAT on petrol and diesel to give relief to consumers.

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According to a price notification of state-owned fuel retailers, petrol and diesel prices remained unchanged at record highs across the country on November 3 after increasing for six straight days.

The last increase on November 2 took the price of petrol in Delhi to its highest-ever level of Rs 110.04 a litre. The price remained the same on November 3. Diesel price stayed unchanged at Rs 98.42 per litre on the day.

"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 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," the government said in a press release.

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"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," it said.

(Edited by : Jomy Jos Pullokaran)

First Published:Nov 3, 2021 8:11 PM IST