Diwali Special; Petrol Cut by Rs 5, Diesel By Rs 10 After Deduction In Excise Duty

After the Centre reduced excise duty on fuels yesterday, petrol and diesel prices have dropped dramatically across the country on the day of the Diwali festival, Thursday.

Furthermore, numerous state governments have reduced VAT (Value Added Tax) on both petrol and diesel, delivering a significant respite to the average man throughout the festival season. VAT (Value Added Tax) is an indirect tax on goods and services. Each state has its unique set of VAT regulations.

According to a notification issued by the Ministry of Finance on Wednesday evening, the excise duty on petrol would be decreased by Rs 5 and the excise duty on diesel will be reduced by Rs 10 starting Thursday, resulting in lower petrol and diesel prices.

States that have cut VAT on petrol and diesel:

Gujarat:
Petrol Rs 7/litre; Diesel Rs 7/litre

Uttar Pradesh:
Petrol Rs12/litre; Diesel Rs 12/litre

Uttarakhand:
Petrol Rs 2/litre; Diesel Rs 2/litre

Assam:
Petrol Rs 7/litre; Diesel Rs 7/litre

Karnataka:
Petrol Rs 7/litre; Diesel Rs 7/litre

Goa:
Petrol Rs 7/litre; Diesel Rs 7/litre

Manipur:
Petrol Rs 7/litre; Diesel Rs7/litre

Tripura:
Petrol Rs 7/litre; Diesel Rs7/litre

The overall increase in petrol prices since the government decided to hike excise tax to record levels on May 5, 2020 is now 38.78 per litre. During this time, diesel prices have risen by 29.03 cents per litre.

Opposition parties, particularly Congress, have slammed the government's inexorable increase in fuel costs, demanding that it lower its excise duty.

Motorists will benefit from the reduction in excise duty. Trucks and the agricultural sector, which consume the most diesel, will benefit the most.