Centre and states: Sitharaman reveals 'implication' of duty cut on fuel

Decision to cost Rs 1,00,000 cr a year for central government, says Finance Minister after 'criticism/appraisal' of decision.

Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman

BS Web Team New Delhi
Finance Minister Nirmala Sitharaman said Saturday’s cut on levies on pump prices of petrol and diesel "has an implication" of Rs 1,00,000 crore annually for the central government, responding to "criticism/appraisal" from Opposition-ruled states and independent experts.

The government slashed central excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 litre, a move that will bring relief as household incomes continue to be hit by inflation.

Sitharaman, writing on Twitter yesterday, said that this will reduce the price of petrol by Rs 9.5 per litre and of diesel by Rs 7 per litre. This will lead to revenue foregone for the centre of about Rs 1 trillion per annum, she said, and asked states

First Published: May 22 2022 | 5:27 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com