Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Saturday thanked the Center for the visionary decision to reduce the central excise duty on petrol and diesel and said it underscores the unwavering commitment of the Prime Minister Modi towards citizens’ concerns and showcases his leadership in times of crisis.
“Grateful to Prime Minister Narendra Modi ji and FM Nirmala Sitharaman ji for the visionary decision to reduce the Central Excise on Petrol by Rs 8/litre and Diesel by Rs 6/litre which will result in a reduction in the Petrol price by Rs 9.5/ltr and Diesel by Rs 7/ltr.Cost of Rs 1 lakh cr/year for treasury,” Mr Puri said in a tweet.
Today’s decisions, along with measures to curb rising prices for key infrastructure materials such as cement, steel and plastics, will bring large-scale relief to millions of Indian families and will provide essential support to the Indian economy in a challenging global inflationary environment.
—Hardeep Singh Puri (@HardeepSPuri) May 21, 2022
The Union Minister said: “This decision follows the reduction of central excise duty by Rs 5 on petrol and Rs 10 on diesel on November 21. It underlines Prime Minister Modi’s unwavering commitment Ji toward citizens’ concerns and showcases the prime minister’s leadership in crisis, despite some states’ refusal to cut prices and extraordinary supply constraints.”
Further emphasizing the fact that despite this second central excise reduction, the price of petrol and diesel in states like Maharashtra, Rajasthan, West Bengal, Tamil Nadu, Andhra Pradesh, Jharkhand and Kerala remains around 10-15 rupees higher than in BJP ruled states. , the Union Minister said it was time for these states to wake up and reduce VAT to relieve their consumers.
“This is due to the refusal of their respective governments to reduce VAT. It is time for these states to wake up and reduce VAT to relieve their consumers,” he added.
Earlier on Saturday, in a major step aimed at relieving people of high fuel prices, the Center announced a reduction in excise duty on petrol by Rs 8 per liter and on diesel by Rs 6 per litre.
Making the announcement in tweets, Finance Minister Sitharman said the move would have a revenue implication of around Rs 1 lakh crore per annum.
She also urged states to also reduce VAT on petroleum products to relieve the common man.
The government had also reduced excise duties on petrol and diesel in November last year on the eve of Diwali. It had reduced excise duty on petrol by Rs 5 per liter and on diesel by Rs 10 per litre.