In a relief to consumers on the eve of Diwali, the central government on Wednesday announced a reduction in excise duty on petrol and diesel.
The excise duty on petrol will be reduced by Rs 5 and that on diesel by Rs 10 and new rates will come into effect from tomorrow.
Government sources said that 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. They said that states have also been urged to reduce VAT on petrol and diesel to give relief to consumers.
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.
States are also urged to commensurately reduce VAT on Petrol and diesel to give relief to consumers.
(With ANI inputs)