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Assam CM Himanta Biswa Sarma.
Image Source : PTI

Assam CM Himanta Biswa Sarma.

After the Centre on Wednesday reduced excise duty on petrol and diesel, Assam Chief Minister Himanta Biswa Sarma has announced a reduction in VAT on fuel by Rs 7 with immediate effect.

Earlier in the day, buckling under pressure, the government cut excise duty on petrol and diesel by a record Rs 5 and Rs 10 per litre to help bring down rates down from their highest-ever levels.

The excise duty reduction is effective from November 4 when petrol price will come down from the current rate of Rs 110.04 a litre in Delhi to Rs 105.04. Diesel rate will be reduced from Rs 98.42 per litre to Rs 88.42.

"Government of India has taken a significant decision of reducing Central Excise Duty on petrol and diesel by Rs 5 and Rs 10 (pre litre) respectively from tomorrow. Prices of petrol and diesel will thus come down accordingly," the finance ministry said in a statement.

This is the highest-ever reduction in excise duty and rolls back a part of the Rs 13 and Rs 16 per litre increase in taxes on petrol and diesel effected between March 2020 and May 2020 to avoid passing on to consumers the sharp fall in international oil prices.

ALSO READAfter Assam, Tripura reduces petrol, diesel price by Rs 7, new rates effective from Thursday

ALSO READ | Petrol to get cheaper by Rs 5, Diesel by Rs 10 from tomorrow as govt reduces excise duty

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