Govt reduces excise duty on petrol by Rs 8 per litre, diesel by Rs 6

Government has reduced the Central excise duty on Petrol by 8 rupees per litre and on Diesel by 6 rupees per litre. This will reduce the price of petrol by 9.5 rupees per litre and of Diesel by 7 rupees per litre. Finance Minister Nirmala Sitharaman announced this in a series of tweets. The Minister said it will have revenue implication of around 1 lakh crore rupees per year for the government. She exhorted all state governments, especially the states where reduction was not done during the last round in November last year, to also implement a similar cut and give relief to the common man.

Reduction of Central Excise Duty on Petrol & Diesel. Central excise duty has been reduced by ₹ 8 per litre for Petrol and by ₹ 6 per litre for Diesel (by reducing Road & Infrastructure Cess).

Notification no. 02/2022- Central Excise & Notification no. 25/2022 - Customs issued. pic.twitter.com/SzlcJDKdqG

— CBIC (@cbic_india) May 21, 2022

Similarly the government is calibrating customs duty on raw materials & intermediaries for iron & steel to reduce their prices. Import duty on some raw materials of steel will be reduced. Export duty on some steel products will be levied. Ms Sitharaman announced that this year, government will give a subsidy of 200 rupees per gas cylinder upto 12 cylinders to over 9 crore beneficiaries of Pradhan Mantri Ujjwala Yojana. This will have a revenue implication of around 6100 crore rupees a year. She said the world is passing through difficult times due to Covid and Ukraine conflict has brought in supply chain problems and shortages of various goods.This has  resulted in inflation and economic distress in a lot of countries. But despite the adverse economic conditions, Narendra Modi government is  committed to ensure that prices of essential items are kept under control.