Petrol, diesel may become cheaper soon, government considering tax reduction: sources

The Finance Ministry is considering a reduction in the excise duty on petrol and diesel. Currently, petrol and diesel prices are running at their highest-ever levels in the country.

Petrol, diesel may become cheaper soon, government considering tax reduction: sources
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New Delhi: The ever-increasing prices of petrol and diesel have made a big impact on the common man's pocket. The central government can now provide some relief to the common people. 

The Finance Ministry is considering a reduction in the excise duty on petrol and diesel. Currently, petrol and diesel prices are running at their highest-ever levels in the country.

According to sources, to reduce the burden on the general public, the government is considering a reduction in taxes.

India is the third-largest consumer of crude oil in the world. Crude oil prices have doubled in the last 10 months, which has affected the oil prices in the domestic market of India. Due to tax and duty in the country, the price of petrol and diesel increases up to 60% in retail.

The coronavirus pandemic adversely affected the economy, due to which the PM Modi government raised tax twice over the last 12 months. The government wanted to increase tax revenue by increasing taxes on petrol and diesel. The government did not pass on the benefit of low crude oil prices to the customers.

According to news agency Reuters, now the finance ministry is considering a reduction of 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 income of the government and also provides relief to the general public.

Petrol and diesel prices are being considered stable. The government is considering a solution that can keep prices stable. It can be decided by mid-March. The government wants to stabilize prices before reducing taxes so that the tax structure does not have to change if crude oil prices rise in future. 

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 stable for third consecutive day

Petrol and diesel prices did not change for the third consecutive day on Tuesday. Petrol and diesel are currently at their highest levels in the capital Delhi and Mumbai. 

In Delhi, the price of petrol has reached Rs 91.17 while the price of diesel has reached Rs 81.47. In Mumbai, the price of petrol has reached Rs 97.57 and the price of diesel has reached Rs 88.60 per liter.

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