Petrol, diesel prices reduced as Centre cuts excise duty

Amid rising inflation, the Central government on Saturday (May 21) announced that it is reducing excise duty on petrol and diesel.

Union Finance Minister Nirmala Sitharaman said the Central excise duty on petrol will be slashed by ₹8 per litre and on Diesel by ₹6 per litre. This will have “revenue implication of around ₹1 lakh crore/year for the government”.

The latest reduction on excise duty will lower petrol price by ₹9.5 per litre and of diesel by ₹7 per litre.

“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,” she tweeted.

After the announcement by Sitharaman, Prime Minister Narendra Modi said it is “always people first for us” and the reduction in fuel prices will impact various sectors.

“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.’,” PM Modi tweeted.

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

Sitharaman urged all state governments to announce similar reduction especially those who had done in 2021.

“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.

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

Further, Sitharaman said the government had given ₹200 per gas cylinder (upto 12 cylinders) to over 9 crore beneficiaries of Pradhan Mantri Ujjwala Yojana.

“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,” she tweeted.

Ujjwala Yojana has helped crores of Indians, especially women. Today’s decision on Ujjwala subsidy will greatly ease family budgets. https://t.co/tHNKmoinHH

— Narendra Modi (@narendramodi) May 21, 2022

According to Sitharaman, the Modi government “is devoted to the welfare of the poor”.

“We’ve taken a number of steps to help the poor and middle class. As a result, the average inflation during our tenure has remained lower than during previous governments,” she said.

1/12 Our government, since when @PMOIndia @narendramodi took office, is
devoted to the welfare of the poor.We’ve taken a number of steps to help the poor and middle class. As a result, the average inflation during our tenure has remained lower than during previous governments.

— Nirmala Sitharaman (@nsitharaman) May 21, 2022