On the eve of Diwali, the Government of India decided to give India a Diwali gift and that by reducing the excise duty on the fuel.
Excise duty on petrol was reduced by 5 rupees and on diesel was reduced by 10 rupees. This was because of the continuous increase in the price of fuels and people were getting restless because of this continuous price hike of fuels.
Due to the second covid wave, the price of fuels was going up and, the highest price was reached 22nd October 2021 in Mumbai at Rs 112.78
The government faced much of a backlash and realized the need of the hour to reduce the price. Going with the decision to reduce the price.
The reduction of price was decided and was implemented by reducing the excise duty and the same was done also. For petrol, the excise duty was reduced by 5 rupees and for Diesel, excise duty was reduced by 10 rupees.
The Reserve Bank of India (RBI) governor Mr. Shashikanta Das explained about this price cut. He added that the supply-side factors are been addressed by the government in this price cut. Excise cut was done particularly for the pulses and edible oils and now very recently on fuels like petrol and diesel, all these will lead to an organized inflation scenario. He said that this price cut is good for inflation in India.
According to him excise duty cut on petrol and diesel is significantly showing positive inflation in India. Also mentioned that food inflation is now quite under control but the core inflation has continued to remain increased.
Mr. Das said that an excise duty cut on petrol and diesel is significantly a positive side of inflation.
So far India is concerned with the core inflation which is increasing and that will lead to a policy level challenge. A full stop to keep that under control, they are looking at it very closely and also the core inflation.
This price cut will help India and its people by relaxing their minds against the continuous price hike. It will also help the economy by controlling the inflation in the country.
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