After keeping fuel prices unchanged for more than 40 days, the government on May 21 cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 per litre.
The excise duty cut will translate into a reduction of Rs 9.5 a litre on petrol in Delhi and Rs 7 a litre in diesel after taking into account its impact on other levies.
Petrol price in Delhi will now cost Rs 95.91 a litre as against Rs 105.41 a litre, while diesel will cost Rs 89.67 a litre as opposed to Rs 96.67 now.
In Mumbai, one litre of petrol will cost Rs 111.35 and a litre of diesel Rs 97.28. In Chennai, the petrol and diesel prices are Rs 102.65 and Rs 94.24 per litre respectively.
Also Read | Explained: Centre cuts excise duty on petrol, diesel. Could prices come down more or will they rise again?
In Kolkata, the price of petrol is Rs 106.03 and diesel is ₹92.76. In Bengaluru, one litre of petrol will cost ₹101.94 and one litre of diesel will cost ₹87.89.
Oil-marketing companies will pass on the excise duty cut to consumers despite losing Rs 13.08 a litre on petrol and Rs 24.09 per litre on diesel because of holding rates.
“Today, the world is passing through difficult times. Even as the world is recovering from Covid-19 pandemic, the Ukraine conflict has brought in supply chain problems and shortages of various goods. This is resulting in inflation & economic distress in a lot of countries,” Sitharaman said.
The Kerala government announced a cut in tax on the prices of petrol and diesel by Rs 2.41 and Rs 1.36 per litre respectively, following reduction of fuel price by the Centre.
Similarly, the Rajasthan government reduced Value-added tax (VAT) on petrol by Rs 2.48 per litre and diesel by Rs 1.16 per litre.
Odisha govt has also reduced taxes on petrol and diesel by Rs 2.23 and Rs 1.36 a litre respectively, the new fuel price in Odisha will be Rs 102.25 and Rs 94.86 respectively.
Union Finance Minister Nirmala Sitharaman on Saturday said 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 big-ticket measures were announced to give relief to consumers battering under high fuel prices that have also pushed inflation to a multi-year high.
(With inputs from agencies)
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
