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Indian Government Reduce Petrol and Diesel Taxes, Provide Relief to Consumers

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Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, has announced that the central government and BJP-ruled states have reduced taxes on petrol and diesel to offer relief to consumers. The minister explained that the government’s decision to reduce excise duty on petrol and diesel was prompted by the increase in international fuel prices.

In May 2022, the central government had already reduced the excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre to reduce high fuel prices. Puri mentioned that despite the rise in international crude oil prices, oil marketing companies (OMCs) did not pass on the high fuel costs to consumers.

However, the OMCs are still making under recovery on the sale of diesel. Puri clarified that there is no under recovery on petrol now. He also pointed out that there is a significant difference in petrol and diesel prices in states governed by BJP and other governments.

In response to the recent hike in LPG prices, the minister stated that the government cannot operate on freebies. On March 1, the price of a 14.2-kg gas cylinder was raised by Rs 50, bringing the cylinder’s cost to Rs 1,103 in Delhi and Rs 1,102.50 in Mumbai.

The government’s move to reduce taxes on petrol and diesel will provide relief to consumers who were burdened by high fuel prices. However, the OMCs’ under recovery on the sale of diesel remains a concern. The significant difference in petrol and diesel prices in BJP-ruled states and other states is another matter that needs to be addressed.

Overall, the government’s initiatives to provide relief to consumers from high fuel prices are commendable. The reduction in taxes on petrol and diesel will help reduce the financial burden on consumers, and the government must continue to take steps to alleviate the suffering of the public.

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