Indian government has cut duties on petrol and diesel and other BJP-ruled states follow suit

The price of petrol in Delhi fell to ₹103.97 a litre at 6 a.m. on Thursday (November 4) and diesel prices fell by a bigger margin to ₹86.67 a litre in the national capital. Petrol prices in Mumbai fell to ₹109.98 a litre from ₹115.85, while diesel fell to ₹94.14 a litre from ₹106.62, which was also the highest among all metros.

The Union government in India slashed excise duty rate on both petrol and diesel bringing down the retail prices by ₹5 a litre for petrol and ₹10 for diesel from November 4. Other state governments like Goa and Assam, also ruled by the Bharatiya Janata Party (BJP), the party in power at the Centre, have also followed suit by reducing the state duties as well.

Source: Agency reports on November 4

Domestic prices of both fuels have touched record highs on the back of a steep rise in crude oil cost. Petrol has already breached the ₹100 per litre mark and above in several cities, whereas, diesel is not far behind.

The government had come under criticism for the sharp rise in transport fuels as well as the fears of runaway inflation had become a bother for the Reserve Bank of India (RBI).


Between March and May 2020, the union government had hiked the excise duty on on petrol by ₹13 per litre and ₹16 on diesel, at a time when oil prices had come crashing down. The states had also followed suit with consequent rise in VAT. This gave the exchequer additional cushion to offset the fall in tax revenue as well as to foot the new expenses in the wake of the pandemic.

According to the statement from the Ministry of Finance, there is no energy shortage in the country and that commodities such as petrol and diesel are available adequately to meet requirements.

"Driven by the enterprising ability of India's aspirational population, the Indian economy has witnessed a remarkable turnaround post the Covid-19 induced slowdown. 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."

With inputs from IANS

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