New Delhi: Union Finance Minister Nirmala Sitaraman announced a sharp cut in central excise duty on fuel prices amid surging inflation. As per the decrease of taxes on petrol, the price of petrol will be decreased ₹ 9.5, while the diesel price will be decreased by ₹ 7.

The central excise duty on petrol has been cut by ₹ 8 per litre and the same on diesel has been cut by ₹ 6 per litre, she said. The Government says it will lose ₹ 1 lakh crore by taking the cut on central excise duties. She urged states to implement a similar cut and pass on the benefit to the common man.

After the latest excise cut, the incidence of central tax on petrol will come down to ₹ 19.9 a litre and that on diesel to ₹ 15.8 per litre. Government will give ₹ 200 per cylinder subsidy to Ujjwala Yojana beneficiaries for 12 cylinders in a year to help ease some of the burden arising from cooking gas rates rising to record levels.