The government cut excise duty on fuel by Rs 8 per litre and diesel by Rs 6 per litre on Saturday. Petrol will now cost Rs 95.91 per litre in India’s capital Delhi, while diesel will cost Rs 89.67 per litre. The excise duty drop announced by the finance minister will reduce petrol prices by Rs 9.5 per litre and diesel costs by Rs 7 per litre.
Ujjwala Yojana participants would also receive a Rs 200 per cylinder subsidy, according to the government. Import duties on plastics and steel raw materials have also been reduced to help lessen inflationary pressures. ‘We always put people first! The decisions made today, particularly the one relating to a large drop in gasoline and diesel prices, will have a good influence on a variety of sectors, bring relief to our population, and increase ‘Ease of Living,’ In a tweet, Prime Minister Modi remarked.
India’s inflation rate reached a new high of 15.08 per cent in April, with retail inflation rising to 7.79 per cent. ‘ Hundreds of millions of Indians, particularly women, have benefited from the Ujjwala Yojana. The decision on the Ujjwala subsidy made today will help families save a lot of money ‘, the Prime Minister of India went on to say. Following the Indian government’s announcement, the Kerala state government announced a Rs 2.41 and Rs 1.36 reduction in the state tax on gasoline and diesel, respectively.
‘It will have a revenue consequence of roughly Rs 1 lakh crore/year for the government,’ India’s finance minister Nirmala Sitharaman stated in a tweet. State governments were also pushed by the finance minister to reduce sales taxes. ‘I would want to exhort all state governments, particularly those states where reductions were not made during the previous cycle (November 2021), to impose a comparable cut and provide assistance to the ordinary man,’ India’s finance minister stated.