Centre cuts excise duty on fuel; Petrol & diesel to get cheaper by Rs 9.5 & Rs 7 per litre

New Delhi: Amid the skyrocketing price of fuel prices in India, Finance Minister Nirmala Sitharaman on Saturday said the government is set to reduce the Central excise duty on petrol by Rs 8 per litre and on Diesel by Rs 6 per litre. The alleviation in the fuel prices will reduce the price of petrol by Rs 9.5 per litre and of diesel by Rs 7 per litre.

Finance Minister said the relief by the government will cause an extra burden of Rs. 1 lakh crore per year.

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

She also requested all the state governments to transfer the benefit to the common man to give them relief.

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

8/12
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.

— Nirmala Sitharaman (@nsitharaman) May 21, 2022

In one of her tweets, she informed that the government is planning to reduce the import duty on some raw materials of steel.

11/12 Similarly we are 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.#MSME #iron #steel #Customs #Export

— Nirmala Sitharaman (@nsitharaman) May 21, 2022

The government has announced to give a subsidy of Rs. 200 per gas cylinder for the beneficiaries of the Pradhan Mantri Ujjwala Yojana. This will improve the lifestyle of over 9 crore beneficiaries.

9/12 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. #Ujjwala

— Nirmala Sitharaman (@nsitharaman) May 21, 2022

For providing extra cushions for farmers, the government has decided to increase the subsidy on fertilizers to Rs. 1.10 lakh crore from Rs. 1.05 lakh crore.

5/12 Despite rising fertilizer prices globally, we have protected our farmers from such price hikes. In addition to the fertilizer subsidy of ₹ 1.05 lakh crore in the budget, an additional amount of ₹ 1.10 lakh crore is being provided to further cushion our farmers.

— Nirmala Sitharaman (@nsitharaman) May 21, 2022

Aiming to reduce the cost of final plastic products, the government will also cut the customs duty on raw materials and intermediaries for plastic products.

10/12 We are also reducing the customs duty on raw materials & intermediaries for plastic products where our import dependence is high. This will result in reduction of cost of final products. #MSME #chemicals #Plastic #Customs

— Nirmala Sitharaman (@nsitharaman) May 21, 2022

In the last tweet, she also said the government is also taking the necessary steps to reduce the cost of cement.

”Measures are being taken up to improve the availability of Cement and through better logistics to reduce the cost of cement. Notifications with specific details on all the above will be issued by GoI within the next hour,” tweeted Sitharaman.

12. Measures are being taken up to improve the availability of #Cement and through better logistics to reduce the cost of cement.

Notifications with specific details on all the above will be issued by GoI within the next hour.

— Nirmala Sitharaman (@nsitharaman) May 21, 2022