Government’s disclosure on the prices of petrol and diesel, why was the excise duty reduced? Impact on common man’s pocket – ..

News India Live, Digital Desk: Amidst the rising prices of petrol and diesel in the country, the Central Government took a big step and announced a reduction in excise duty. Since this decision, speculations were being made that what is the real reason behind it and will oil become cheaper in future? Now the government has made its position clear on this through Parliament and public forums. The government says that this decision is not just electoral mathematics, but is part of a well-thought-out strategy to protect the common man from the turmoil in the global market.

How much relief did the general public get? understand the complete mathematics

The reduction in excise duty has had a direct impact on the kitchen and transportation of the common man. According to the data released by the government, due to reduced excise duty, the prices of petrol and diesel fell by Rs 5 to 10 per liter. The purpose of this cut was to reduce the cost of logistics, so that the prices of everyday items like vegetables, fruits and ration do not increase in the market. Experts believe that if the government had not taken this step, the inflation rate could have gone out of control.

Global crude oil challenge and government treasury

The government has clarified that the prices of crude oil in the international market remain continuously fluctuating. The supply chain has been affected due to the Russia-Ukraine war and Middle East tensions. According to the Central Government, the reduction in excise duty has put a burden of lakhs of crores of rupees on the government exchequer, but the first priority of the government was to protect the public from ‘price shock’. This change in duty has been made only to strike a balance between the losses of oil companies and the interests of the common man.

Will oil prices reduce further? Know what the signs are

The demand to bring petrol and diesel under the ambit of GST has once again started gaining momentum. Although the government has not yet taken any final decision on this, it has definitely indicated that if the international crude oil prices stabilize, then the oil companies can pass on the benefit of further reduction in prices to the consumers. At present, states are also being appealed to reduce VAT so that oil prices can come to the same level in every corner of the country.