Is it true that the petrol prices have been cut in India across the board?

Petrol price across India were cut by anywhere between Rs 6.00 to Rs.6.35 per litre while the prices of diesel were cut by Rs.11.16 to Rs 12.88 per litre. In the light of the government cutting the excise duties on petrol and diesel, the oil companies passed on a massive reduction directly to the consumers.

On Wednesday, just a day ahead of Diwali, the government opted to cut excise duty on petrol by Rs.5 per litre and excise on diesel by Rs.10 per litre. With petrol prices in many of the cities crossing Rs.115 per litre, this came as a much needed relief. Also, the sharp fall in diesel prices would also contribute to curtailing inflation. The government is likely to take a revenue hit of Rs.45,000 crore on account of this move.

The states are yet to contribute their bit and if the state VAT rates are also cut, then the actual reduction could be a lot more. Most of the BJP rules states have already announced a cut in VAT while many of the non-BJP states are yet to make a formal announcement. VAT rates vary from state to state, leading to differential rates of fuel. This cut partially rolls back the hike of Rs.13 and Rs.16 per litre increase in excise on petrol and diesel due to COVID.