New Delhi- India: In response to rising inflation, Finance Minister Nirmala Sitharaman announced a 9.5 percent reduction in central excise duty on gasoline and a 7 percent reduction in central excise duty on diesel.
According to Ms Sitharaman, the central excise duty on petrol has been reduced by $8 per litre, while the charge on diesel has been reduced by $6 per litre. The government claims that the reduction in central excise duty will cost them Rs 1 lakh crore.
The Minister asked governments to follow suit and pass the savings on to the general public.
“I ask to all state governments, particularly those that did not impose a comparable cut at the last cycle (November 2021), to do the same and provide assistance to the ordinary man,” Ms Sitharaman said.
1/12 Our government has been dedicated to the welfare of the poor since @PMOIndia@narendramodi entered office. We’ve taken several measures to assist the poor and middle class. As a result, average inflation under our administration has stayed lower than in past administrations.
Petrol will cost 95.91 per litre in Delhi from Sunday, down from 105.41 per litre now, while diesel will cost 89.67 per litre, down from 96.67 per litre now.
Following the current excise drop, the central tax on fuel will be reduced to 19.9 per litre and on diesel to 15.8 per litre.
In addition, the government will provide a $200 per cylinder subsidy to Ujjwala Yojana participants for 12 cylinders per year to assist alleviate some of the strain caused by rising cooking gas prices.
Ms Sitharaman tweeted, “This will aid our mothers and sisters.”
The gas cylinder subsidy, according to the Finance Minister, will have a “revenue implication of roughly 6,100 crore.”
The Minister defended the administration, saying that actions had been taken to protect the poor in the face of substantial price increases.
“We’ve taken several measures to assist the poor and middle class. As a result, average inflation under our administration has been lower than in prior administrations “she stated.
Prime Minister Narendra Modi stated shortly after the changes were announced that “people always come first for us” and that the cuts will improve “comfort of living.”
According to Oil Minister Hardeep Puri, a similar reduction in central duties occurred in November of last year.
“This move follows a central excise drop of 5% on gasoline and 10% on diesel in November of last year. Despite certain states’ refusal to decrease rates and extraordinary supply restrictions, it highlights PM Modi Ji’s unwavering dedication to residents’ concerns and highlights PM’s leadership in a crisis “Hardeep Puri, India’s oil minister, tweeted.
Petrol is currently retailing for more than 100 in most regions of the country. Because of the value-added tax, the rates differ per state (VAT).
India’s oil demands are mainly reliant on imports, and domestic gasoline and diesel prices are tied to international rates.
India’s wholesale and consumer prices rose at their quickest rates in years in April, leading the central bank to raise interest rates during an unexpected policy meeting earlier this month.