Petrol and diesel prices fell sharply on Friday, November 5, as additional states announced VAT reductions. Several states joined the federal government in lowering fuel prices, which had just reached record highs. Before the Centre and the states announced excise reduction, the price of gasoline and diesel had reached a lifetime high. The government announced a reduction in excise duty on petrol and diesel by Rs 5 per litre and Rs 10 per litre on the eve of Diwali, that is on Wednesday evening. The extra step taken by states also helped to lower gasoline and diesel prices, which had been steadily rising in recent months.Petrol was priced at Rs 103.97 in the national capital of Delhi after this price cut. However, after the excise drop, a litre of diesel cost Rs 86.67 in India.The price of petrol in Mumbai has been reduced to Rs 109.98 a litre. After the price drop, the price of a gallon of diesel in the financial capital was Rs 94.14.On Friday, the price of a gallon of petrol in Kolkata, West Bengal’s capital, was Rs 104.67. In the eastern metropolitan metropolis, however, the price of a litre of diesel was set at Rs 89.79.In Chennai, the price of a litre of petrol was decreased to Rs 101.40, while the price of a litre of diesel was reduced to Rs 91.43. The price of petrol in Bhopal was Rs 107.23, while the price of diesel in the Madhya Pradesh capital was Rs 90.87.According to a report by news agency PTI, excise duty reductions on diesel and petrol will cost Rs 45,000 crore and result in a 0.3 percentage point increase in the Centre’s fiscal deficit. According to economists at Nomura, the cost of the government’s move, or the full fiscal year, will be Rs 1 lakh crore, or 0.45 percent of GDP.The excise rate drop announced on Wednesday was the largest in history. However, economists say the measure only partially reverses a duty hike of Rs 13 per litre for petrol and Rs 16 per litre for diesel in 2020, which came after a sharp decrease in oil prices, and comes on the heels of rising crude prices pushing retail prices to record highs.“Government of India has taken a significant decision of reducing Central Excise Duty on Petrol & Diesel by Rs 5 and Rs 10 respectively from tomorrow. Prices of petrol and diesel will thus come down accordingly,” the finance ministry had said in a statement on Wednesday.“The Government of India has made efforts to ensure that there is no energy shortage in the country and that commodities such as petrol and diesel are available adequately to meet our requirements,” it added.Petrol And Diesel PricesMumbaiPetrol – Rs 109.98 per litreDiesel – Rs 94.14 per litreDelhiPetrol – Rs 103.97 per litreDiesel – Rs 86.67 per litreChennaiPetrol – Rs 101.40 per litreDiesel – Rs 91.43 per litreKolkataPetrol – Rs 104.67 per litreDiesel – Rs 89.79 per litreBhopalPetrol – Rs 107.23 per litreDiesel – Rs 90.87 per litreHyderabadPetrol – Rs 108.20 per litreDiesel – Rs 94.62 per litreBengaluruPetrol – Rs 100.58 per litreDiesel – Rs 85.01 per litreChandigarhPetrol – Rs 100.12 per litreDiesel – Rs 86.46 per litreGuwahatiPetrol – Rs 94.58 per litreDiesel – Rs 81.29 per litreLucknowPetrol – Rs 95.28 per litreDiesel – Rs 86.80 per litreGandhinagarPetrol – Rs 95.35 per litreDiesel – Rs 89.33 per litreThiruvananthapuramPetrol – Rs 106.36 per litreDiesel – Rs 93.47 per litreJammu And KashmirPetrol 96.15 Rs/LDiesel – Rs 86.67 per litre
