Petrol price cut by Rs. 9.5/liter, diesel by Rs. 7/liter
Petrol and diesel prices are set to come down in India as the Centre slashed the central excise duty on fuel on Saturday. Finance Minister Nirmala Sitharaman tweeted the government is reducing the central excise duty on petrol and diesel by Rs. 8/liter and Rs. 6/liter, respectively. This will reduce the petrol and diesel prices by Rs. 9.5/liter and Rs. 7/liter, respectively, she noted.
Move to bring down prices of key commodities
The move is also expected to bring down the skyrocketing prices of key commodities amid the rising inflation. Notably, prices have risen globally following the Russia-Ukraine war and supply chain disruptions. India's wholesale and consumer prices climbed at a record-high rate in April this year. This pushed the Reserve Bank of India (RBI) to raise interest rates during an unexpected policy meeting this month.
Subsidy on gas cylinders also announced
The government would also provide a subsidy of Rs. 200 per LPG cylinder to Ujjwala Yojana beneficiaries for 12 cylinders in a year, said the finance minister. The move will help alleviate some of the hardship caused by the increased cooking gas prices, Nirmala Sitharaman added. According to her, the gas cylinder subsidy will result in a "revenue impact of roughly Rs. 6,100 crore."
What will be the fuel prices now?
Petrol is currently retailing for more than Rs. 100 in most parts of the country. To note, petrol in Delhi will cost Rs. 95.91/liter starting Sunday, down from the current price of Rs. 105.41/liter. Similarly, diesel will cost Rs. 89.67/liter, down from the existing Rs. 96.67/liter. Owing to value-added tax (VAT), however, the fuel rates differ from state to state.