Petrol price to reduce by Rs 9.5, diesel by Rs 7 per litre as Centre cuts excise duty
'We are reducing the central excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre,' finance minister Nirmala Sitharaman said
A fuel station in Gangtok. Image courtesy Wikimedia Commons
The price of petrol will come down by Rs 9.5, while the diesel will be cheaper by Rs 7 as finance minister Nirmala Sitharaman announced a cut in central excise duty on Saturday.
"We are reducing the central excise duty on Petrol by Rs 8 per litre and on Diesel by Rs 6 per litre," Sitharaman said.
7/12 We are reducing the Central excise duty on Petrol by ₹ 8 per litre and on Diesel by ₹ 6 per litre.
This will reduce the price of petrol by ₹ 9.5 per litre and of Diesel by ₹ 7 per litre.It will have revenue implication of around ₹ 1 lakh crore/year for the government.
— Nirmala Sitharaman (@nsitharaman) May 21, 2022
"The excise duty cut will have a revenue implication of around ₹ 1 lakh crore/year for the government," Sitharaman added. "But, the Narendra Modi-led government has been dedicated towards the welfare of the poor since it assumed office," she further said. The government also announced a subsidy on gas cylinders. "This year, we will give a subsidy of ₹ 200 per gas cylinder (upto 12 cylinders) to over 9 crore beneficiaries of Pradhan Mantri Ujjwala Yojana," Sitharaman tweeted.
9/12 Also, this year, we will give a subsidy of ₹ 200 per gas cylinder (upto 12 cylinders) to over 9 crore beneficiaries of Pradhan Mantri Ujjwala Yojana. This will help our mothers and sisters. This will have a revenue implication of around ₹ 6100 crore a year. #Ujjwala — Nirmala Sitharaman (@nsitharaman) May 21, 2022
"The move will help our mothers and sisters," she added.
The announcements were made taking into account disruptions in supply chains caused by the Ukraine war as well as the global economic recovery from the COVID-19 pandemic.
Always people first for us: PM Modi
Hailing the fuel price cut, prime minister Narendra Modi said, "Today’s decisions, especially the one relating to a significant drop in petrol and diesel prices will positively impact various sectors, provide relief to our citizens and further ‘Ease of Living."
It is always people first for us!
Today’s decisions, especially the one relating to a significant drop in petrol and diesel prices will positively impact various sectors, provide relief to our citizens and further ‘Ease of Living.’ https://t.co/n0y5kiiJOh
— Narendra Modi (@narendramodi) May 21, 2022
BJP president J P Nadda on Saturday lauded as "historic" the government's decision to cut excise duty on petrol and diesel to give relief to people, and demanded that opposition-ruled states also slash taxes for greater public benefit.
In a statement, Nadda said BJP-ruled states had cut Value Added Tax (VAT) on petrol and diesel when the Centre reduced excise duty on petrol by Rs 10 and diesel by Rs 5 in November last year but opposition parties had not done so in their states, something Modi had highlighted in his meeting with chief ministers last month.
With inputs from agencies
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