New Delhi: Finance Minister Nirmala Sitharaman announced a significant cut on fuel prices, reducing Central excise duties on petrol by Rs 8 and Diesel by Rs 6 per litre. Sitharaman's new announcement through Twitter will effect a reduction of prices on petrol by Rs 9.5 per litre, while diesel by 7.
The minister said that the new reduction in petrol and diesel would impose a revenue implication of nearly Rs 1 lakh crore per annum on the government.
The minister also informed that the government had urged all the state governments, particularly those who haven't made any reductions during the last round in November 2021, to make similar cuts on fuel prices.
Also, Sitaraman announced a subsidy of ₹ 200 per gas cylinder (up to 12 cylinders), benefiting nine crores under Pradhan Mantri Ujjwala Yojana, inducing a revenue implication of around Rs 6100 crore a year.
Further, she said that the Centre is reducing customs duty on raw materials and intermediaries for plastic products and iron & steel, resulting in a cost reduction on the final products.
The minister claimed that average inflation during her government's term was always lower than in previous governments. The Modi government had taken steps to help the poor and middle class and "is devoted to the welfare of the poor", she claimed. She tweeted, "Keeping in line with @PMOIndia @narendramodi's commitment to help the poor & common man, TODAY, we are announcing more steps to help our people."