Centre reduces excise duty on petrol by Rs 8/ltr, diesel by Rs 6/ltr

Inflation bites exchequer as move will reduce FY23 revenue by Rs 85,000 cr

The Modi government, on Saturday, 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.

Making the announcement on Twitter, Finance Minister Nirmala Sitharaman 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 to also reduce their duties on petrol and diesel.

Sitharaman also said