In a major relief for the common man, the Prime Minister Narendra Modi-led government on Saturday cut excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre. This excise duty cut will translate into a reduction of Rs 9.5 a litre on petrol and Rs 7 a litre in diesel after taking into account its impact on other levies.
"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," Union Finance Minister Nirmala Sitharaman tweeted. "It will have a revenue implication of around Rs 1 lakh crore/year for the government," he added.
Sitharaman exhorted all state governments to also cut local sales tax or VAT. "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," she said.
Meanwhile, Bharatiya Janata Party (BJP) has demanded the same from the Opposition-ruled states. "BJP demands that the opposition should also reduce petrol and diesel rates in the states governed by them so that common people can get some more relief amid inflation," said BJP president JP Nadda said in a statement.
Prime Minister Narendra Modi, meanwhile, said that people are the first priority for his government. Modi tweeted, "It is always people first for us! Today's decisions, especially the one relating to a significant drop in petrol and diesel prices will positively impact various sectors, provide relief to our citizens and further 'Ease of Living'."
