Congress General Secretary Priyanka Gandhi Vadra. (ANI )

Priyanka Gandhi on Centre’s decision to cut excise duty on petrol, diesel

Congress general secretary Priyanka Gandhi Vadra today took a dig at the Centre after it announced a cut in excise duty in petrol, diesel.

The Congress leader tweeted“This is a decision out of fear, not from the heart. The recovery is to answer the government’s loot in the coming elections,”  when loosely translated in English.

Buckling under pressure, the government on Wednesday cut excise duty on petrol and diesel by a record 5 and 10 per litre to help bring down rates down from their highest-ever levels.

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

“Government of India has taken a significant decision of reducing Central Excise Duty on petrol and diesel by 5 and 10 (pre litre) respectively from tomorrow. Prices of petrol and diesel will thus come down accordingly,” the finance ministry said in a statement.

This is the highest-ever reduction in excise duty and rolls back a part of the 13 and 16 per litre increase in taxes on petrol and diesel effected between March 2020 and May 2020 to avoid passing on to consumers the sharp fall in international oil prices.

That hike in excise duty had taken central taxes on petrol to their highest level of 32.9 per ltire and that on diesel to 31.8 a litre.

Petrol price on Thursday was cut by 6.07 per litre and diesel price by 11.75 in Delhi as oil companies passed on a record reduction in excise duty rates to consumers.

Buckling under pressure, the government had on Wednesday cut excise duty on petrol by 5 per litre and that on diesel by 10 a litre to give reprieve to consumers battered by record-high retail fuel prices. Since states charge local sales tax or VAT not just on the base price but also on the excise duty levied by the centre, the total incidence of price reduction is higher.

Petrol will cost 103.97 per litre in Delhi against 110.04 per litre, according to a price notification of state-owned fuel retailers.

Diesel rates accordingly will reduce to 86.67 per litre from 98.42 per litre.

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