Prices of petrol has been reduced by 9 rupees 50 paise per litre and diesel by 7 rupees per litre across the country. The move comes after government reduced the Central excise duty on Petrol by 8 rupees per litre and on Diesel by 6 rupees per litre yesterday.
Finance Minister Nirmala Sitharaman made the announcement yesterday evening in a series of tweets. The new rates came into effect at 6 this morning.
Ms Sitharama said, it will have revenue implication of around 1 lakh crore rupees per year for the government. She exhorted all state governments, especially the states where reduction was not done during the last round in November last year, to also implement a similar cut and give relief to the common man.
She also announced that this year, government will give a subsidy of 200 rupees per gas cylinder upto 12 cylinders to over 9 crore beneficiaries of Pradhan Mantri Ujjwala Yojana. This will have a revenue implication of around 6100 crore rupees a year.
Government is also reducing the customs duty on raw materials and intermediaries for plastic products where country’s import dependence is high. This will result in reduction of cost of final products.
Ms Sitharaman said similarly, customs duty is being calibrated on raw materials and intermediaries for iron and 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. She said measures are being taken up to improve the availability of Cement and through better logistics to reduce the cost of cement.
She said the world is passing through difficult times due to Covid and Ukraine conflict has brought in supply chain problems and shortages of various goods. This has resulted in inflation and economic distress in a lot of countries. But despite the adverse economic conditions, Narendra Modi government is committed to ensure that prices of essential items are kept under control.
She stressed that government is devoted to the welfare of the poor and has taken a number of steps to help the poor and middle class. She said that as a result of these initiatives, the average inflation during this government’s tenure has remained lower than during previous governments.
The Minister said even a few developed countries could not escape some shortages and disruptions but asserted government has ensured that there is no shortage of essential goods.
She said even during the pandemic, NDA government set a paradigm of welfare, especially with PM Garib Kalyan Anna Yojana. She added that this is now acknowledged and appreciated the world over.
Despite rising fertilizer prices globally, the Minister highlighted that the government has protected farmers from such price hikes. In addition to the fertilizer subsidy of 1.05 lakh crore rupees in the budget, an additional amount of 1.10 lakh crore rupees is being provided to further cushion country’s farmers.
Ms Sitharaman stated that Prime Minister Modi has specifically asked all arms of the government to work with sensitivity and give relief to the common man.
Prime Minister Narendra Modi has said that financial decisions, especially the one relating to a significant drop in petrol and diesel prices will positively impact various sectors. In a tweet, Mr Modi said, it will provide relief to our citizens and further ‘Ease of Living.
On the announcement of providing a subsidy of 200 rupees per gas cylinder to the beneficiaries of Pradhan Mantri Ujjwala Yojana, the Prime Minister said the decision on Ujjwala subsidy will greatly ease family budgets. He said, Ujjwala Yojana has helped crores of Indians, especially women.
Home Minister Amit Shah has said that even in this challenging global situation, the Central government under the leadership of Prime Minister Narendra Modi has provided a huge relief to the common people. In a tweet, Mr Shah said that many such steps have also been taken for other sectors, which will bring down the price of the products.
BJP President JP Nadda has demanded that the opposition ruled states should also reduce petrol and diesel rates so that common people can get some more relief amid inflation.
Mr. J P Nadda has lauded the government’s decision to slash the excise duty on petrol and diesel. He said, it shows Prime Minister Narendra Modi’s commitment to the welfare of the common man.
BJP President demanded that the opposition ruled states should also reduce petrol and diesel rates so that common people can get some more relief amid inflation.
Yesterday, the government announced several measures including reduction in the excise duty on petrol by eight rupees per litre and on diesel by six rupees per litre.
Commerce and Industry Minister Piyush Goyal said that Central excise duty cut on Petrol and Diesel is a major step towards easing prices. He said, gas cylinder subsidy to over 9 crore Ujjwala Yojana beneficiaries will bring a smile on the faces of our mothers and sisters.
Confederation of All India Traders, CAIT has welcomed the Central government’s decision of reducing the prices of petrol and diesel. Talking to AIR News, CAIT Secretary General Praveen Khandelwal said that with the reduction in fuel prices the transportation cost will come down and the manufacturers should also cut the prices of various commodities.