Petrol Price rate dropdown by Rs 9.5 per litre, diesel by Rs 7 per litre as the Centre cuts excise duty

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• May 21, 2022 | Poonam Nath

The Union government has slashed Petrol and diesel prices by Rs 8 and Rs 6 per litre, respectively.

Digital Desk: Nirmala Sitharaman, the Union Finance Minister, stated on Saturday that the Union government would reduce the Central Excise Duty on Petrol by Rs 8 per litre and on Diesel by Rs 6 per litre as it will lower petrol prices by Rs 9.5 per litre and diesel prices by Rs 7.

In a recent tweet, the finance minister stated, “It will have a revenue implication of around ₹1 lakh crore per year for the government ”

Sitharaman also called on state governments to follow the same path.

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

She also stated that the Centre would provide a subsidy of $200 per gas cylinder (up to 12 cylinders) to the Pradhan Mantri Ujjwala Yojana's over nine crore beneficiaries. "Our mothers and sisters will benefit from this." "This will result in revenue of roughly 6,100 crores each year."

"In addition to the fertiliser subsidy of 1.05 lakh crore allocated in the budget, an additional sum of 1.10 lakh crore is being provided to cushion our farmers further," Sitharaman added.

"We have shielded our farmers from price increases despite rising fertiliser prices globally," she said.

According to the minister, some steel items will be subject to export duties, "We're also adjusting customs duties on iron and steel raw materials and middlemen to lower prices." Import duties on some steel raw materials will be decreased. 

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