Cracking News: On eve of Diwali, Centre cuts excise duty on petrol by Rs 5, diesel Rs 10

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 by Rs 5 and 10 respectively.The 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. The release said that states have also been urged to reduce VAT on petrol and diesel to give relief to consumers.The press release put out by the Centre reads: "The Indian farmers have, through their hard work, kept the economic growth momentum going even during the lockdown phase and the massive reduction in excise on diesel will come as a boost to the farmers during the upcoming Rabi season.""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 Indian economy has witnessed a remarkable turnaround post the COVID-19 induced slowdown driven by the enterprising ability of India’s aspirational population. "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. 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," the release concluded.