Highlights:
• Excise duty was cut on petrol and diesel
• After, state government also reduced VAT on petrol and diesel
• Finance minister said to provide Rs 200 subsidy on per LPG cylinder
After keeping fuel prices high and unchanged for more than 40 days, the government on May 21 cut excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre. This lead to reduction of Rs 9.5 litre on petrol and Rs 7 litre in diesel.
Petrol and diesel prices
|
States
|
Petrol (Rs per litre) |
Diesel (Rs per litre) |
|
Delhi |
95.91 |
89.67 |
|
Mumbai |
111.35 |
97.23 |
|
Chennai |
102.65 |
94.24 |
|
Kolkata |
106.03 |
92.76 |
|
Bengaluru |
101.94 |
87.89 |
Oil-marketing companies will pass on the excise duty cut to consumers despite losing Rs 13.08 litre on petrol and Rs 24.09 per litre on diesel because of holding rates.
VAT reduced by state govt. on petrol and diesel
|
State
|
Petrol (reduced by Rs per litre) |
Diesel (reduced by Rs per litre) |
|
Kerala |
2.41 |
1.36 |
|
Rajasthan |
2.48 |
1.16 |
|
Odisha |
2.23 |
1.36 |
Subsidy on LPG cylinders
Union Finance Minister, Nirmala Sitharaman on May 21 said that the government would provide a subsidy of ₹200 per LPG cylinder to over nine crore beneficiaries of the Pradhan Mantri Ujjwala Yojana. The subsidy will be provided for a maximum of 12 cylinders per year.
These measures were announced to give relief to consumers battering under high fuel prices that have also pushed inflation to a multi-year high.
