On Sunday (May 22), auto fuel prices fell dramatically in Delhi, Mumbai, Bangalore, Bhubaneshwar, and other cities around the country. Finance Minister Nirmala Sitharaman revealed on Twitter on Saturday (May 21) a significant drop in excise duty on petrol and diesel by Rs 8 per liter and Rs 6 per liter, correspondingly. Folks were relieved by this decision because gas prices had risen above Rs 100 in several locations. This much-welcomed action, however, will lose the government Rs 1 lakh crore in earnings per year. The FM also requested state governments to reduce Value-Added Tax (VAT) on gasoline costs.
Sitharaman’s statement on reduction in Excise duty on Petrol and Diesel Prices, Check Details
Sitharaman’s remarks come a day after the administration declared a central excise duty drop of Rs 8 per liter on petrol and Rs 6 per liter on diesel on Saturday.
FM Sitharaman stated in a series of tweets on Sunday, “Good to see the interest created by @PMOIndia @narendramodi’s decision yesterday to bring an Excise Duty decrease on fuel and diesel.” Sharing some important information.”
7/12 We are reducing the Central excise duty on Petrol by ₹ 8 per litre and on Diesel by ₹ 6 per litre.
This will reduce the price of petrol by ₹ 9.5 per litre and of Diesel by ₹ 7 per litre.
It will have revenue implication of around ₹ 1 lakh crore/year for the government.
— Nirmala Sitharaman (@nsitharaman) May 21, 2022
The excise duty on fuel and diesel is made up of the basic excise duty (BED), special extra excise duty (SAED), road and architecture cess (RIC), and agriculture and infrastructure development cess (AIDC). While basic education is shareable between states, SAED, RIC, and AIDC are not.
The world is currently going through a dreadful era. Even as the world recovers from the Covid-19 epidemic, the Ukraine crisis has disrupted supply chains and produced shortages of a number of goods. Moreover, this has resulted in inflation and economic misery in many countries,” Sitharaman wrote on Twitter.
Which states have decreased their VAT on gasoline and diesel?
Other states, like Rajasthan and Kerala, lowered Value-added Tax (VAT) on petrol and diesel shortly following her pronouncement on gasoline costs. Rajasthan Chief Minister Ashok Gehlot announced a reduction in VAT of Rs 2.48 per litre on petrol and Rs 1.16 per litre on diesel.
केन्द्र सरकार द्वारा पेट्रोल-डीजल की कीमतों में की गई एक्साइज कटौती से राज्य सरकार का पेट्रोल पर 2.48 रुपये प्रति लीटर एवं डीजल पर 1.16 रुपये प्रति लीटर वैट भी कम होगा। इससे प्रदेश में पेट्रोल 10.48 रुपये एवं डीजल 7.16 रुपये प्रति लीटर सस्ता होगा।
— Ashok Gehlot (@ashokgehlot51) May 21, 2022
He stated on Twitter, “Because the national government has reduced the costs of petrol and diesel, the state government will decrease VAT by Rs 2.48 per litre on petrol and Rs 1.16 per litre on diesel. Petrol will be pricier by Rs 10.48 and diesel by Rs 7.16 per litre in the state as a result of this.”
Read More: Petrol, diesel prices hike in Delhi today after increase in VAT