The government also announced a subsidy of Rs 200 kitchen gas Consumers who were given free connections under the Ujjwala program, one of the prime social welfare schemes of the Narendra Modi government launched in 2016.
The Center will forego Rs 1 lakh crore in tax revenue in the current fiscal as a result of the cut in excise duty. Rs 6,100 crore will be spent on subsidy for Ujjwala consumers, Finance Minister Nirmala Sitharaman Announcing the decisions, he said.
This is the second duty cut by the Center in a little over six months and will reduce the price of petrol by Rs 9.50 per liter and diesel by over Rs 7 based on the current one. tub rates across states, assuming the base rates are the same.
On November 4, 2021, the Center had reduced the excise duty on petrol by Rs 5 and on diesel by Rs 10. The latest cuts have brought the excise duty down to pre-pandemic levels – rather than by a few paise. As on March 1, 2020, the excise duty on petrol was Rs 19.98 per liter and that on diesel was Rs 15.83 per liter. Will do this. Now it has become Rs 19.90 and Rs 15.80 per liter respectively.
The latest cut comes after the increase in global prices after the Ukraine war passed on to consumers, resulting in petrol prices crossing Rs 100 per liter and cooking gas cylinders over Rs 1,000 in most parts of the country. happened.
The reduction in pump prices will be slightly higher in states with higher VAT rates such as Maharashtra, Rajasthan, Madhya Pradesh and West Bengal than in states with lower tax rates. This is because the incremental reduction in state levies will be greater in higher tax states as VAT is levied after excise duty, dealer commission and other charges.
watch Petrol price slashed by Rs 9.5 per liter, diesel by Rs 7 per liter as Center cuts excise duty