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Petrol prices would fall by ₹ 9.5, while diesel prices will fall by ₹ 7, as Finance Minister Nirmala Sitharaman announced a steep reduction in government excise duty on fuel prices in the face of rising inflation.
The central excise duty on petrol has been reduced by $8 per litre, while the levy on diesel has been reduced by $6 per litre, according to Ms Sitharaman. The government claims that the reduction in central excise duty will cost them Rs 1 lakh crore.
The Minister urged states to undertake comparable cuts and pass the savings on to the general public.
"I would want to exhort all state governments, particularly those where reductions were not implemented during the previous round (November 2021), to likewise impose comparable cuts and provide assistance to the ordinary man," Ms Sitharaman said.
In addition, the government will provide a 200 per cylinder subsidy to Ujjwala Yojana participants for 12 cylinders in a year to assist alleviate some of the strain caused by increased cooking gas prices.
"This will help our mothers and sisters," Ms Sitharaman tweeted.
According to the Finance Minister, the gas cylinder subsidy will result in a "revenue implication of roughly 6,100 crores."
India's wholesale and consumer prices rose at the quickest rates in years in April, leading the central bank to raise interest rates during an unexpected policy meeting this month.