Government slashes excise duty on petrol by Rs 5, diesel by Rs 10

Excise duty on petrol and diesel will be reduced by Rs 5 and Rs 10 respectively with effect from November 4.

By Sumana Sarkar calendar 03 Nov 2021 Views icon8518 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Government slashes excise duty on petrol by Rs 5, diesel by Rs 10

Following the growing clamour across the country for Central excise duty and state government VAT (value added tax) cuts in the prices of petrol and diesel, which have hit record highs since many months, the Central government has finally reduced fossil fuel prices. At 8.30pm today, the Central government announced an excise duty reduction on petrol and diesel. While the excise duty on petrol will stand reduced by Rs 5 per litre, that on diesel will fall by Rs 10 a litre. The new prices come into effect from midnight of November 4.

After factoring the Rs 5 excise duty duty in a petrol litre and Rs 10 for a diesel litre, the likely fuel prices for the two fuels in Mumbai, Delhi, Chennai and Kolkata are likely to be as below:   

As Autocar Professional had reported earlier,October 2021 has set a record when it comes to monthly price increases in the two fossil fuels. While the cost of diesel has risen sharply by Rs 8.78 a litre – or 8.97% – petrol in Mumbai became costlier by Rs 7.55 a litre – or 6.99% last month. (see data chart below).

Petrol and diesel are amongst the most heavily taxed items in the country. If you consider the petrol cost in Delhi, 30% (Rs 32.90) comprises excise duty and 23% (Rs 25.31) is State VAT (Value Added Tax). Club the two taxes and motorists are paying Rs 58.21 or 53% of each petrol litre as tax.

As regards diesel, the excise duty component is Rs 31.80 or 32.81%, while VAT is Rs 14.37 (up from Rs 13.77 on October 15) or 14.60% of the retail price. Together, the two taxes account for Rs 46.17 or 48% of the price a motorist pays to tank up on diesel. In FY2021, the Centre got Rs 334,894 crore excise duty from petrol and diesel

Apart from the fact that rising fuel prices also add to the inflation in the country, it is finally a huge burden for the consumer. The move is expected to provide some relief to the consumers.

Also Read
Diesel turned costlier by Rs 8.78 a litre, petrol by Rs 7.55 in October

RELATED ARTICLES
Indian Oil signs mega 10-year LNG supply contract with Total Energies

auther Autocar Pro News Desk calendar20 Jun 2024

Total Energies has signed a sales and purchase agreement with Indian Oil Corporation for the delivery to India of up to ...

Indian Oil and GPS Renewables plan JV for compressed biogas

auther Autocar Pro News Desk calendar20 Jun 2024

The joint venture will focus on integrating advanced biogas technologies to convert organic waste into Compressed Biogas...

Tata Motors to increase CV prices from July 1 in third hike this year

auther Autocar Pro News Desk calendar19 Jun 2024

Cumulative January 1, April 1 and July 1 price hikes see Tata Motors’ range of commercial vehicles getting costlier by u...