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Petrol, diesel prices to drop sharply as Nirmala Sitharaman announces excise duty cut

Petrol, diesel to be cheaper: Nirmala Sitharaman appealed to the states to reduce VAT on petrol and diesel.

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Nirmala Sitharaman said the duty cut will bring the petrol and diesel prices down. (ANI)
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New Delhi: Union Finance Minister Nirmala Sitharaman has announced a substantial cut in the central excise duty levied on petrol and diesel. The move will bring the soaring prices of the two essential commodities down. The finance minister said that the Centre's move will reduce the prices of petrol by Rs 9.5 per litre and of diesel by Rs 7 per litre.

"We are reducing the Central excise duty on Petrol by Rs 8 per litre and on Diesel by Rs 6 per litre. This will reduce the price of petrol by Rs 9.5 per litre and of Diesel by Rs 7 per litre," she tweeted. 

The Narendra Modi government has also announced that it will give Rs 200 per cer cylinder subsidy to Ujjwala Yojana beneficiaries for 12 cylinders in a year.

The Centre has also said that it is taking measures to improve the availability of cement through better logistics, to reduce the cost of cement.

"We are also reducing the customs duty on raw materials and intermediaries for plastic products where our import dependence is high. Import duty on some raw materials of steel will be reduced. Export duty on some steel products will be levied," Sitharaman added.

Sitharman tweeted the move will have a revenue implication of around Rs 1 lakh crore per year.

The Narendra Modi government had reduced the excise duty on petrol and diesel in November last year before Diwali. Then, it had reduced the excise duty on petrol by Rs 5 and diesel by Rs 10 per litre.

Nirmala Sitharaman appealed to the states to reduce VAT on petrol and diesel.

"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 added.

Nirmala Sitharaman said the Ujjawala move will help the country's mothers and sisters. "This will have a revenue implication of around Rs 6100 crore a year," she said.

She said an additional amount of Rs 1.10 lakh crore is being provided to help the farmers.

"Despite rising fertilizer prices globally, we have protected our farmers from such price hikes. In addition to the fertilizer subsidy of Rs 1.05 lakh crore in the budget, an additional amount of Rs 1.10 lakh crore is being provided to further cushion our farmers," she added.

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