The Modi government declared on Saturday that petrol prices, which have been over Rs 100 per litre in most states, will be considerably reduced. At a news conference, Finance Minister Nirmala Sitharaman said that the Central government is lowering the excise duty on petrol by Rs 8 per litre and diesel by Rs 6 per litre. This does not, however, imply that prices will be cut in the same proportion.
According to Sitharaman, the move by the Centre will lower petrol prices by Rs 9.5 per litre. The cost of diesel would be reduced by Rs 7 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,” she tweeted.
As a result, petrol rates in Uttar Pradesh may return to about Rs 95-97 per litre. The price of petrol in Noida is presently Rs 105 per litre.
According to Sitharman, the move will generate roughly Rs 1 lakh crore in revenue per year.
In November of last year, just before Diwali, the Narendra Modi government lowered the excise duty on fuel and diesel. The excise duty on fuel was decreased by Rs 5 and diesel by Rs 10 per litre at the time.