Petrol Price cut by Rs 9.5, Diesel by Rs 7 as govt slashes excise duty

Petrol and Diesel price reduce news today: Finance Minister Nirmala Sitharaman announced on Saturday that the price of petrol will be reduced by Rs 9.5, whereas the diesel prices will see a cut of Rs 7 due to a sharp cut in central excise duty on fuel prices. "We are reducing the Central excise duty on Petrol by Rs 8 per litre and on Diesel by Rs 6 per litre. This will reduce the price of petrol by Rs 9.5 per litre and of Diesel by Rs 7 per litre," said Union Finance Minister Nirmala Sitharaman.

Petrol diesel prices cut: How much will government lose?

The government will lose roughly Rs 1 lakh crore in revenue as a result of the action. The Centre is also lowering customs duties on raw materials and intermediaries for plastic products, which are heavily reliant on imports. As a result, the finished product will be less expensive. Price rises have been fueled by the Ukraine crisis and global supply chain disruptions.

India's wholesale and consumer prices rose at their quickest rates in years in April, leading the central bank to raise interest rates during an unexpected policy meeting earlier this month.

She said: "I wish to exhort all state governments, especially the states where reduction wasn`t done during the last round (November 2021), to also implement a similar cut and give relief to the common man."

In yet another major move, the government has decided that this year it will give a subsidy of Rs 200 per gas cylinder (upto 12 cylinders) to over 9 crore beneficiaries of Pradhan Mantri Ujjwala Yojana.

"This will help our mothers and sisters. This will have a revenue implication of around Rs 6,100 crore a year."

Further, it is also reducing the customs duty on raw materials and intermediaries for plastic products where the country`s import dependence is high. It will result in reduction of cost of final products.

A notification with specific details on all these mention moves will be issued by the Centre within the next hours.

This is a breaking news story. Check back for more details.