The central government on May 21 announced a reduction in the excise duty levied on petrol and diesel to give relief to consumers reeling under the pressure of high fuel prices.
Finance Minister Nirmala Sitharaman said that the central excise duty on petrol will be reduced by Rs 8 per litre, while that for diesel will be reduced by Rs 6 per litre. She also asked states to consider cutting the taxes.
Consumers breathe a sigh of relief, but could the overall prices come down more or is this just a small breather? This explainer attempts to answer all this and more.