Gujarat Government’s Diwali gift to 6-crore: Petrol to cost R.67.53/lt and Diesel Rs.60.77/lt

Posted on 10, Oct 2017

Gujarat Government has made drastic cut of 4 (four) per cent in Excise Duty on petrol and diesel as Diwali gift to 6-crore Gujaratis, Chief Minister Vijay Rupani and Deputy Chief Minister Nitinbhai Patel announced here today. The cut will be effective from midnight of intervening night between Tuesday and Wednesday,

With the reduction in Excise Duty, Mr. Rupani said that petrol price will be cut by Rs.2.93 per litre to cost Rs.67.53 per litre, and diesel price to be cut by Rs.2.72 per litre to cost Rs.60.77 per litre. The State Government had first reduced the price by 60 paise in prompt pursuance of the Central Government appeal to provide relief to farmers and citizens.

After detailed discussion with the Finance Department, Mr. Rupani said the government decided to reduce the Excise Duty by further 4 (four) per cent in the larger public interest. This is for the first time that Excise Duty has been drastically cut by whopping four per cent in one go. The decision would cost the State Exchequer Rs.2,316-crore.

Mr. Nitinbhai Patel said the consumption of petrol and diesel products have increased in trade and industries to farms with fast pace of development. The important decision has been taken keeping in view the finances of public transport system like ST buses also, which depend largely on the cost of diesel. The decision will provide a big relief to particularly middle class people in their movement during the Diwali festival and vacation. Vehicles entering Gujarat from other states may buy more fuels here, increasing their total sale

Mr. Patel said that a major portion of the State Government’s revenue, about Rs.12,000-crore come from Excise Duty. Yet, the decision to reduce the duty on petrol and diesel has been taken in anticipation of overall rise in revenue.