On the eve of Diwali, the Centre announced a cut in the excise duty payable on gasoline and diesel.
While the excise duty on fuel has been decreased by Rs 5, the duty on diesel has been reduced by Rs 10. The revised rates will take effect on November 4th.
According to a statement released by the Ministry of Finance, the reduction in excise duty is larger on diesel due to its widespread use in agriculture.
“Diesel will get a decrease in excise duty that is twice that of gasoline. The Indian farmers have kept the economic growth momentum going despite the shutdown, and the substantial cut in fuel excise will help farmers throughout the upcoming Rabi season “It was stated.
The exchequer suffers a loss of nearly Rs 14,000 crore for every rupee cut in excise duty on petrol or diesel. As a result, a reduction in excise duty of Rs 5 on gasoline and Rs 10 on diesel will result in a revenue loss of about Rs 2.10 lakh crore for the government.
