Excise Duty Cut On Fuel Prices, Subsidy On Cylinders: Govt Rolls Key Measures To Tackle Inflation

Sitharaman further stated that the government will provide a subsidy of Rs 200 per gas cylinder (up to 12 cylinders) to nearly 9 crore Pradhan Mantri Ujjwala Yojana beneficiaries this year.

Union Finance Minister Nirmala Sitharaman. (Source: Getty Images)

New Delhi: Union Finance Minister Nirmala Sitharaman revealed on Saturday that the government has decided to lower the Central Excise Duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre. Sitharaman further stated that the government will provide a subsidy of Rs 200 per gas cylinder (up to 12 cylinders) to nearly 9 crore Pradhan Mantri Ujjwala Yojana beneficiaries this year.

Speaking about inflation under PM Modi government, Union Finanace Minister said, "Our government since when PM Modi took office, is devoted to the welfare of the poor.We’ve taken a number of steps to help the poor and middle class. As a result, the average inflation during our tenure has remained lower than during previous governments."

1/12 Our government, since when @PMOIndia @narendramodi took office, is
devoted to the welfare of the poor.We’ve taken a number of steps to help the poor and middle class. As a result, the average inflation during our tenure has remained lower than during previous governments.

— Nirmala Sitharaman (@nsitharaman) May 21, 2022

Here are the key announcements issued by the Union Finanace Minister Sitharaman: 

1. In response to public outcry, Finance Minister Nirmala Sitharaman announced on Saturday a Rs 8 per litre reduction in excise duty on petrol and Rs 6 per litre reduction in diesel excise duty to avert fuel price increases caused by a jump in international oil prices.
2. In addition, the government would provide a Rs 200 per cylinder subsidy to Ujjwala Yojana recipients for 12 cylinders in a year to assist alleviate part of the strain caused by increased cooking gas prices.
3. The Centre is also lowering customs duties on raw materials and intermediates for plastic goods, where we rely heavily on imports, she noted. This will result in reduction of cost of final products,” she tweeted. 
4. The Finance Minister went on to say that the government is "calibrating customs duty on raw materials and intermediaries for iron and steel in order to cut their prices." She added that import duties on some steel raw materials will be cut, but export duties on some steel products would be imposed.
5. Sitharaman also stated that steps are being done to "improve the availability of cement and to minimise the cost of cement via better logistics."
6. Sitharaman noted that these initiatives are in accordance with the government's commitment to assisting the underprivileged and needy. She also stated that, despite the difficult international scenario, the government has guaranteed that critical items are neither in limited supply or scarcity.
7. “Despite rising fertilizer prices globally, we have protected our farmers from such price hikes. In addition to the fertilizer subsidy of Rs 1.05 lakh crore in the budget, an additional amount of Rs 1.10 lakh crore is being provided to further cushion our farmers,” she said. 
8. She also stated that the administration is dedicated to keeping necessary item costs under control.