New Delhi: The Centre on Saturday announced to reduce 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 Diesel by ₹ 7 per litre, Union Finance Minister Nirmala Sitharaman announced in a series of tweets.
The finance minister also announced a subsidy of ₹ 200 per gas cylinder (up to 12 cylinders) to over 9 crore Pradhan Mantri Ujjwala Yojana beneficiaries.
The decision of subsidy on the gas cylinder will have a revenue implication of around ₹ 6,100 crore a year while the cut in excise on diesel and petrol will have a revenue implication of around ₹ 1 lakh crore per year for the government.
The Union Minister has asked state governments to cut the state taxes on the fuel to give more relief to the common public.
In another decision, the finance minister also announced an additional amount of ₹ 1.10 lakh crore as a fertiliser subsidy. This is in addition to the budgetary allocation of ₹ 1.05 lakh crore to provide further cushion to farmers due to rising fertiliser prices due to the Ukraine-Russia conflict.