Reduction In Excise Duty On Petrol And Diesel To Finally Bring Relief To Masses, How Much Will You Save?

Petrol Diesel cheaper: Assam, Tripura, Manipur reduced petrol and diesel by 7 rupees each, making petrol cheaper by Rs 12 and diesel by Rs 17.

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Petrol Diesel Prices Reduction: As a Diwali gift to the masses, the Centre and some state governments have reduced the price of petrol and diesel. The festival season has brought some relief from inflation. This decision will make a positive impact on the budget of every household. On Wednesday evening, the Central government reduced excise on petrol and diesel by Rs 5 and Rs 10 respectively. Soon, many state governments reduced their share of VAT and skyrocketing petrol and diesel prices came down slightly.

Petrol-diesel cheaper by Rs 12 in UP

In Uttar Pradesh, the Yogi Government reduced the fuel prices by Rs 7. If the Centre reduced Rs 5 on petrol that means it has become cheaper by Rs 12. Similarly, UP reduced diesel prices by Rs 2. Taking in the Centre's reduction of Rs 10, diesel will now be cheaper by Rs 12. Even though this is only a slight cost reduction, this will bring some relief to the common man. Petrol is now cheaper by Rs 12 in UP. If you fill the car with 40 litres of petrol, you will save Rs 480. Similarly, filling your bike with 10 litres of petrol will save you Rs 120.

Diesel is cheaper by Rs 12 in UP. Upon filling the 300-litre diesel tank of the truck, you will save Rs 3600. The prices may have been decreased only a little but it has brought much-needed relief to the people. With upcoming elections, the ruling party, BJP, in UP must have lowered the tax as rising fuel prices were becoming a grave concern for the people. Many states have reduced their VAT more than UP.

BJP led states - Petrol cheaper in 9 states
Assam, Tripura, Manipur reduced petrol and diesel by 7 rupees each, making petrol cheaper by Rs 12 and diesel by Rs 17. Gujarat, Karnataka and Goa also followed the route. The reduction in petrol and diesel by 7 rupees each made petrol cheaper by Rs 12 and diesel by Rs 17. However, the Uttarakhand government reduced VAT by Rs 2 on petrol but did not give any relief on diesel. As a result, petrol became cheaper by Rs 7 and diesel by Rs 10. The Bihar government also reduced VAT from petrol and diesel by Rs 1.30 and Rs 1.90 respectively.

The impact on revenue? 

Petrol became cheaper by Rs 6.30 while diesel prices came down by Rs 11.90. After the Centre's decision, Congress-ruled states have come under pressure to reduce the VAT. The Modi government knows that the excise collection has surged. As the markets return to normal, the GST collection is also increasing. In such a situation, the government can execute their plans even if they get less revenue from petrol and diesel

The decision will reduce the Centre's revenue by Rs 8,700 crore per month. For the remainder of the current fiscal, the impact on the revenue would be Rs 43,500 crore. The state governments will also have to bear similar losses. For months, common people have suffered by paying huge taxes on petrol and diesel. At last, they will enjoy some relief. Cheaper petrol-diesel will reduce transportation costs, thereby stalling inflation. A reduction in excise duty on diesel will come as a boost to the farmers during the upcoming Rabi season. The decision will boost consumption and keep inflation low.