Petrol-diesel may soon be cheaper; the government is considering reducing tax: report

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New Delhi, 2 March 2021: The ever-increasing prices of petrol and diesel have made the most impact on the common men’s pocket. The central government can now provide some relief to the common people.  The Finance Ministry is considering reducing excise duty on petrol and diesel.  Currently, petrol and diesel prices are running at their highest levels in the country.  According to the report, the government is discussing reducing taxes to reduce the general public’s burden.

India is the third-largest consumer of crude oil in the world.  Crude oil prices have doubled in the last ten months, which has affected the domestic market’s oil prices.  Due to tax, the price of petrol and diesel increases up to 60%. The coronavirus epidemic has affected the economy the most, due to which the Modi government raised tax twice in the last 12 months.  The government increased the tax revenue by increasing taxes on petrol and diesel.

According to Reuters, now the finance ministry is considering reducing tax on oil prices.  The finance ministry has discussed this with some states, oil companies, and the petroleum ministry.  According to sources, the Finance Ministry wants to find a way that does not affect the government’s income and provides relief to the general public.

The government is considering a solution that can keep prices stable and wants to stabilize prices before reducing taxes so that the tax structure does not have to change if crude oil prices rise in the future. The decision can be taken in mid-March regarding this.  Recently, Finance Minister Nirmala Sitharaman said that she could not say when the tax on fuel would be reduced, but the states and the government will have to talk among themselves to reduce the tax.

Petrol and diesel prices did not change for the third straight day on Tuesday and are currently at their highest levels in the capital Delhi and Mumbai. In Delhi, the price of petrol has reached Rs 91.17 while diesel’s price has reached Rs 81.47.  In Mumbai, the cost of petrol has reached Rs 97.57, and the price of diesel has reached Rs 88.60 per liter.

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