Home / News / India /  Petrol, diesel prices to fall as Centre cuts excise duty

NEW DELHI : Petrol and diesel prices are set to decline as Centre has reduced the excise duty on both the fuels.

Taking to Twitter, Finance Minister Nirmala Sitharaman on Saturday said that the government is reducing 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," she said. The reduction on excise duty will have a revenue implication of around 1 lakh crore per year for the government, Sitharaman added.

In another tweet, the finance minister asked state governments to follow suit and reduce value added tax on the fuels.

"I wish to exhort all state governments, especially the states where reduction wasn’t done during the last round (November 2021), to also implement a similar cut and give relief to the common man," she said.

Centre had earlier reduced excise duties on petrol and diesel as fuel prices touched record levels.

Union minister for petroleum and natural gas, Hardeep Singh Puri said: "I want to highlight the fact despite this 2nd reduction in Central excise, price of Petrol & Diesel in States like Maharashtra, Rajasthan, West Bengal, Tamil Nadu, Andhra Pradesh, Jharkhand & Kerala remain around 10-15 higher than in BJP ruled states."

He said that tt is time for these states to reduce VAT to provide relief to the consumers.

Petrol and diesel prices across the country although have been largely unchanged since the last price in April 6, they are still at elevated levels and are fueling inflationary concerns.

On Saturday, petrol and diesel price in the national capital stood at 105.41 and 96.67 per litre, respectively. Prices have been steady after increasing by 10 during March 22-April 6.

In a series of tweets, Sitharaman also said that the government will give a subsidy of 200 per gas cylinder, upto 12 cylinders, to over nine crore beneficiaries of Pradhan Mantri Ujjwala Yojana. The move would have a revenue implication of around 6100 crore a year.

Refering to the inflationary concerns, the finance minister said: "Today, the world is passing through difficult times. Even as the world is recovering from Covid-19 pandemic, the Ukraine conflict has brought in supply chain problems and shortages of various goods. This is resulting in inflation & economic distress in a lot of countries."

In April, India's retail inflation rose to an eight year high of 7.79% and the wholesale inflation to a nine year high of 15.1%.

Rituraj Baruah
Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
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