Cut in Fuel Prices, Subsidy on Cylinders: Easing the Burden
With the announcement by Finance Minister Nirmala Sitharaman of the cut in fuel prices, the citizens of India as a whole heaved a sigh of relief. With the price of petrol coming down by ₹ 9.5, diesel getting cheaper by ₹ 7, it is a sharp cut in central excise duty on fuel prices amid surging inflation.
Ms Sitharaman also mentions that the government will lose ₹ 1 lakh crore by taking the cut on central excise duties. The Minister also urged states to implement a similar cut and pass on the benefit to the common man. She also made an appeal to all the state governments, especially the states where reduction wasn’t done during the last round (November 2021), to also implement a similar cut and give relief to the common man.
In addition, the government will also give ₹ 200 per cylinder subsidy to Ujjwala Yojana beneficiaries for 12 cylinders in a year. It will definitely ease some of the burden arising from rising cooking gas rates. The Finance Minister also said the gas cylinder subsidy will have a “revenue implication of around ₹ 6,100 crore.”
At the moment, petrol is selling at over ₹ 100 in most parts of the country. The rates vary across states due to the value-added tax (VAT). India relies heavily on imports to meet its oil needs and the domestic petrol and diesel prices are linked to international rates. India’s wholesale and consumer prices accelerate at their fastest in years in the month of April. It even prompted the central bank to hike interest rates.
However with the cut the prices, steps have been taken to cushion the poor. This has indeed eased the burden of the people a little, amid growing prices.
I hope you have loved reading about this topic, which closely concerns all of us as consumers. In the meantime, keep reading the articles we have brought you this month. We have FSSAI CEO’S article on Eat Right India, a discussion on term insurance, choosing the best detergent powders and many more. Do share your thoughts at email@example.com.
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