Excise duty on petrol is Rs. Five, Rs. Decrease of ten

- Duty cuts will hit government Rs 8,700 crore per month and Rs 1 lakh crore annually

- The government will lose Rs 43,500 crore in the current financial year

- Modi government's tax revenue on fuel increased fivefold from Rs 73,000 crore in 2014 to Rs 3.89 lakh crore in 2020-21

- Petrol in Ahmedabad costs Rs. 6.25 and diesel Rs. 11.50 will be cheaper: New price effective from today

New Delhi: The government has decided to reduce the excise duty on petrol by Rs 5 per liter and diesel by Rs 10 per liter with effect from November 4, following the sharp rise in petrol and diesel prices and the lessons learned from the by-elections. This reduction will be effective from the day of Diwali. As a result, petrol and diesel prices will fall accordingly. Excise on diesel has been reduced to twice that of petrol. Excise on diesel has been significantly reduced to provide relief to Indian farmers. The reduction in diesel before the next rabi season will be very important for farmers.

Petrol price in Delhi will be reduced from the current Rs 110.04 per liter to Rs 105.04 per liter with effect from November 4. Diesel price will be reduced from Rs 98.42 per liter to Rs 88.42.

This is the largest reduction made by the government since March last year, when the government increased excise duty on petrol and diesel by Rs 13 and Rs 16 per liter, respectively. The government at that time did not give the benefit of price reduction to the consumers. At present, the price of petrol and diesel has crossed Rs 100 per liter in all the cities of the country. Prior to the reduction, the government was levying an excise duty of Rs 38.78 per liter on petrol.

Now, according to April-October consumption figures, the government's reduction in excise duty will hit it at Rs 8,700 crore per month, or Rs 1 lakh crore a year. With six months left in the current financial year, the government will be hit by Rs 43,500 crore in the current financial year.

Reducing excise on diesel will be the biggest benefit to the truck and agriculture sector. They consume the most diesel. In the first half of the current financial year, the government's revenue from petroleum products has increased by 33 per cent. Record petrol-diesel prices are having the opposite effect on the common man.

During the April-September 2021 half-year period of the current financial year, the government's excise revenue on fuel products stood at Rs 1.71 lakh crore as against Rs 1.28 lakh crore in the same period last year. Against this, the government earned Rs 95,930 crore from excise during April-September 2019. At the 2019 level, the government's excise revenue has increased by 79 per cent and 33 per cent over the same period last year. During the financial year 2020-21, the government earned Rs 3.89 lakh crore from excise collection as against Rs 2.39 lakh crore in the same period last year. This shows that the government has ample scope for price reduction. When the Modi government came to power, the government earned Rs 73,000 crore from taxes on petrol, diesel and gas, which rose to Rs 3.89 lakh crore at the end of the 2020-21 financial year. Thus, there was a 200 per cent increase in Ritsar. When the government came to power, the excise duty on petrol was Rs 9.42 per liter, which was later increased to Rs 32.90. Thus, it was directly increased by 200 per cent. Given the current state of the human race, the decline is still small. Thus, since the BJP government came to power, it can be said that it has collected more than Rs 20 lakh crore from petrol-diesel and gas taxes alone.

The Congress won more seats than the BJP in the by-elections and the government woke up successfully and had to cut prices. With assembly elections in five states next year, it will be important to see how many states the BJP returns to power after such a high price hike. In Ahmedabad, petrol will be cheaper by Rs 6.25 per liter and diesel by Rs 11.50 per liter due to reduction in prices.