Diwali bonanza: Petrol, diesel prices slashed

In a big Diwali gift for citizens who have borne the brunt of spiraling petrol and diesel prizes, the Centre on Wednesday cut the excise duty on petrol and diesel by `5 and `10 respectively. In most states, fuel prices have crossed the Rs100 mark triggering inflationary trends and a steady rise in prices of all commodities including food items.

A statement by the Union Finance Ministry said, “Crude oil prices have witnessed a global upsurge in recent months. As a consequence, domestic prices of petrol and diesel had increased in recent weeks and these factors were exerting inflationary pressure.” The ministry further said that the reduction in excise duty on diesel will be double that of petrol and will come as a boost to farmers during the upcoming Rabi season. In Karnataka, Chief Minister Basavaraju Bommai had promised to cut fuel prices after the byelections and the state government has decided to complement the Centre’s gesture by reducing prices further.

Reacting to the price cut, Shankar K, who works in a private company, said, “I stay in Nagarbhavi and use my car to reach my office in Koramangala. This rise in fuel prices forced me to stop using my car. Petrol and diesel prices have already reached a historic high, burning a big hole in consumers’ pockets. Now fuel prices have been slashed and the CM too has responded positively”.