Gasoline and Diesel Price Cuts: It is being requested that the state government lower gasoline and diesel VAT fees for the upcoming religious season to ease the burden on farmers.
Across the country, gasoline and diesel prices rose on November 2nd for the seventh consecutive day. Petrol and diesel prices in Delhi rose 0.35 rupees to 110.04 rupees per litre and 98.42 rupees per litre, rising costs.
Mumbai, the country’s financial capital, has seen an increase in gasoline and diesel prices to 115.85 rupees/litre and 106.62 rupees/litre, respectively. petrol and diesel prices were 110.49 and 101.56 rupees \ in Calcutta and 106.66 and 102.59 rupees per litre in Chennai, respectively.
Gasoline and Diesel Price Cuts: On the eve of the Diwali, Festival of Lights, on Wednesday, a reduction in excise taxes on gasoline and diesel was announced by the Government of India. Gasoline and diesel excise taxes will be reduced by 5 and 10 rupees, respectively, starting Thursday, and gasoline and diesel prices will fall accordingly, according to a statement from the Treasury.
Treasury officials state that crude oil prices have increased around the world in the past few months in a press release. Consequently, fuel prices within the nation have risen over the past few weeks, and these factors are exerting an inflationary pressure on them. The ministry said the reduction in diesel excise tax would be double that of gasoline, empowering farmers in the upcoming rabbi season.
She also urged the state to lower gasoline and diesel VAT to ease the burden on consumers.
Gasoline and Diesel Price Cuts-Complete Indian Government News Release
The Indian Government has made an important decision to reduce the central tax on gasoline and diesel by five and ten rupees, respectively, effective from tomorrow. Diesel prices are also falling.
Diesel consumption tax is reduced to twice that of gasoline. Thanks to their efforts, Indian farmers maintain dynamic economic growth even during the blockade phase. Moreover, a significant reduction in the goods tax on diesel is expected to benefit the farmers during the upcoming Rabbinical season.
Crude oil prices have been booming worldwide in recent months. The result has been the rise in domestic gasoline and diesel prices in the last few weeks, putting them under inflationary pressure. Around the world, energy shortages and rising prices are taking place in various forms. Our government has taken steps to prevent energy shortages throughout the country and to ensure that raw materials such as petrol and diesel are available in sufficient quantities to meet all our needs.
Boosted by emerging Indian entrepreneurship, the Indian economy has made a remarkable recovery following the slowdown caused by COVID 19. Significant gains have been seen in all sectors of the economy, including manufacturing, services and agriculture.
Continuing to stimulate the economy, the Government of India has decided to reduce excise taxes on diesel and gasoline by a significant amount.
The reduction of gasoline and diesel excises boosts consumption and keeps inflation low, thereby benefiting the middle class and the poor. Today’s decision should give further impetus to the macroeconomic cycle.
Many countries are being asked to reduce gasoline and diesel VAT accordingly to bail out consumers. The statement states: As a result, domestic gasoline and diesel prices have risen in recent weeks, putting inflationary pressure on them. The world is also experiencing all forms of energy shortages and soaring prices. “
Therefore, fuel-led rising inflation can destabilize the economic recovery as prices of commodities, from essentials to luxury goods continue to rise and consumers are present. As a result, demand decreases.
Rising inflation can also threaten reserves. The Bank of India’s plan to maintain a low-interest rate system has boosted the economy significantly after two waves of pandemics. Despite the risk, the government defended itself. It imposes a high fuel tax. The tax levied on Indian fuel is one of the highest in the world.
There has yet to be a final determination on whether to include petroleum products in the GST range, which will lower gasoline and diesel prices significantly. In the end, the two major options for lowering the price of fuel are now out of reach.
The gasoline prices for Wednesday, October 3 are as follows:
New Delhi: 110.04 Rupees
Kolkata: 110.49 Rupees
Mumbai: 115.85 Rupees
Chennai: 106.76 Rupees
Quoted news report Gandhi has exceeded 120 per litre in some states and the centre will be 2.3 in 2018. Rupees collected 2.58 rupees as a fuel tax in 2017.
Meanwhile, when gasoline and diesel prices reached record highs nationwide and reached the 100 mark in all major cities in the country, including four subways, a reduction in fuel price sales tax was announced.
While the price of gasoline has surpassed the 100 rupees in all four subways, the price of diesel has also surpassed coveted levels in three metropolitan cities while in the nation’s capital it is 98.42 rupees per litre.
The price of oil increased by about 34 rupees per litre in two years and increased by 26 rupees in one year after the sharp increase in world oil prices and taxes. The price of diesel has increased by 29.5 rupees for every litre over the past two years and by 25 rupees for every litre over the past year.
In addition, the reduction in itself will be small, since the excise tax on gasoline is reduced by only 5 per litre. If we take the example of the reduction in the price of gasoline in New Delhi, of the total cost of 109.69 (it was sold two days ago at that time), the excise tax component is 32.90 per litre.
Therefore, even if the excise tax were to be reduced 5 rupees, gasoline prices in the national capital would only drop to 105.69 rupees per litre, which is still high, and is far above the 100 rupee mark.
According to the latest figures, gasoline was selling for 110.04 rupees a litre in Delhi on Wednesday, and diesel for 98.42 rupees. In Mumbai, the price of petrol is 115.85 rupees while the price of diesel is 106.62 rupees a litre.
The excise tax on gasoline was increased from 19.98 rupees per litre to 32.9 rupees last year to recoup profits as international oil prices fell to multi-year lows as the pandemic engulfed them and the move is seen as a Diwali move for overburdened consumers, although earlier in the week the price of LPG bottles was increased by 266 rupees by oil marketing companies, adding to the burden on consumers. ordinary people.
While reducing excise taxes on gasoline and diesel, the government emphasized that this would boost consumption and maintain low inflation, benefitting the poor and middle class.
According to the statement, “Today’s decision will further stimulate the global economic cycle.”
Prices of crude oil have risen sharply over the past few months. Due to this, domestic gasoline and diesel prices have risen in recent weeks, putting pressure on inflation, according to official sources.
edited and proofread by: nikita sharma