Big fuel relief : Petrol price cut by 9.5/L, diesel by 7/L

New Delhi: Under pressure, the government on Saturday cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 per litre to give relief to consumers battering under high fuel prices that has also pushed inflation to a multi-year high.

The 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.

Petrol price in Delhi will from Sunday cost Rs 95.91 a litre as against Rs 105.41 a litre currently while diesel will cost Rs 89.67 a litre as opposed to Rs 96.67 a litre now.

Announcing the duty cut through tweets, Finance Minister Nirmala Sitharaman also said the government will give Rs 200 per cylinder subsidy to Ujjwala Yojana beneficiaries for 12 cylinders in a year to help ease some of the burden arising from cooking gas rates rising to record levels.

A 14.2-kg LPG cylinder costs Rs 1,003 in the national capital. Pradhan Mantri Ujjwala Yojana beneficiaries, the poor women who got free connections, will get Rs 200 subsidy directly in their bank accounts and the effective price for them would be Rs 803 per 14.2-kg cylinder.

This excise duty cuts along with Rs 5 cut on petrol and Rs 10 reduction on diesel effected from November 4, 2021, rolls back the Rs 13 per litre and Rs 16 per litre increase in taxes on petrol and diesel effected between March 2020 and May 2020 to avoid passing on to consumers the sharp fall in international oil prices at that time. The excise duty hikes of 2020 had taken central taxes on petrol to their highest level of Rs 32.9 per ltire and that on diesel to Rs 31.8 a litre.

After the latest excise cut, the incidence of central tax on petrol will come down to Rs 19.9 a litre and that on diesel to Rs 15.8 per litre. "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," Sitharaman tweeted.

It's always people first for us: PM

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'. Ujjwala Yojana has helped crores of Indians, especially women. Today's decision on Ujjwala subsidy will greatly ease family budgets

– Narendra Modi, Prime Minister

IDear FM ... in 60 days, you increased the price of petrol by Rs 10/litre and now reduced it by Rs 9.50/litre. ... U increased the price of Diesel by Rs 10/litre and now reduced it by Rs 7/litre. Stop befooling people! Nation doesn't need jugglery of figures to dupe the people, Nation doesn't need Jumlas, Nation needs rollback of excise on petrol and diesel to May 2014 levels of Rs 9.48/litre on petrol and Rs 3.56/litre on diesel. Stop deceiving, Show the courage to give relief.

– Randeep Surjewala, Congess chief spokesperson