On the Eve of the biggest festival in India, the central government has relieved many people by reducing the price of petrol and diesel. The first major price cut was seen on Wednesday that is 3rd November 2021.
On the 21st of October 2021, India recorded the highest price of petrol traded at 112.113 rupees per liter in Mumbai 106.9 3 per liter in Delhi. This was the highest price ever recorded. People were fuming and restless after this major price hike.
Yielding to the continuously increasing pressure from industry and the general public the central government has announced the reduction of central excise duty on petrol by 5 rupees and diesel by 10 rupees.
This will be in effect from the fourth of November and will bring down the central taxes on petrol by rupees 27.9 and on diesel buy rupees 21.8 which will be again the highest reduction in the retail price of fuels.
As far as the international markets are concerned the fuel prices have gone up and still central government was able to give this relaxation. Due to the rising crude oil rates, the Oil Marketing Companies (OMCs) have gradually increased the base price of the fuels.
This means that there will be no reduction in the price of fuel crude oil in the international market and the price will be continuously increasing at least till the end of December. The reason is the OPEC+ countries are not increasing the production above the predetermined levels and will not be doing the same at least till December. To add to this, the global crude oil demand is also high and continuously rising.
The central government of India has been continuously trying to increase the revenue from petrol without increasing the price of the petrol hence in the year 2014-15 the shareable amount out of the central taxes on diesel was approximately 41% and it is brought down to 5.7%
The government in a statement has said that Indian farmers are continuously working hard to grow the economy. They are tried hard to get the momentum going and keep it moving even during the lockdown. This massive reduction in excise on diesel and petrol will them as well in the upcoming Rabi season.
People knew the price slash was coming after this massive and continuous growth of the fuel prices but since this came just before the day of Diwali this has been a good gift for the people.
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