Gasoline and diesel taxes

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  • India supports cooking gas cylinders for the first time since mid-2020
  • Gas cylinder subsidy Rs 200
  • Eligible people receive 12 subsidized CDs annually
  • Finance Minister calls on states to cut fuel taxes

India reduced taxes on gasoline and diesel, and announced subsidies for cooking gas cylinders, after record price hikes in the local market.

The reduction rate on gasoline and diesel fuel was 7.6% and 7.2%, respectively, after the government announced, on Sunday, May 22nd, a reduction of 8.7 rupees ($0.11) and 7.05 rupees ($0.09) per liter, respectively, for both. Inflation rates reached record levels, according to the “Trend News” agency, quoting the “Tribune” newspaper.

Energy prices are one of the most important factors driving the ups and downs of inflation rates around the world, and the rises in their prices did not push CPI rates to rise only in India, but also hit different countries of the world, as they reached the highest level in both America and the United Kingdom in More than 40 years.

Petrol and diesel taxes in India

The price of gasoline and diesel fuel in India fell after the government cut taxes, and the price of gasoline per liter in Kolkata was 106.03 rupees, compared to 115.12 rupees in the early hours of Sunday.

The price of a liter of gasoline in Chennai was 102.63 rupees, compared to 110.9 rupees in the early hours.

The price of a liter of diesel fell to 92.76 rupees per liter in Kolkata, compared to 99.83 rupees, and it reached 94.24 rupees in Chennai.

The Government of India announced record tax cuts for petrol and diesel, equivalent to Rs 8 and Rs 6 per liter, respectively.

Taking into account the different phases the two fuels go through, prices will see further declines, at Rs 8.69 and Rs 7.05 per liter of petrol and diesel, respectively, on average.

It is reported that the price of one dollar is equivalent to 77.6 rupees.

Petrol and diesel prices in India

In the Indian cinema capital, Mumbai, the price of a liter of petrol fell from Rs 120.5 to Rs 111.35, and diesel from Rs 104.8 to Rs 97.3, after the government cut fuel taxes.

The price of gasoline in the Indian capital, New Delhi, revolves around 96.72 rupees per liter, compared to 104.41 rupees per liter, while the price of diesel 89.6 rupees per liter, compared to 96.67 before the government’s decision to reduce the tax, according to data of state-owned fuel retail companies.

The price of gasoline and diesel fuel varies from state to state in India; Because of the differences in the value-added tax rate imposed by their governments.

tax increase

The taxes on gasoline and diesel – imposed by the central government – have increased sharply since 2020, raising the price of gasoline by 32.9 rupees, and diesel 31.8 a liter.

Following a similar measure by the federal government last November, 25 Indian states reduced the value-added tax for gasoline and diesel fuels by Rs 5 and Rs 10 per liter, respectively.

However, the states whose governments do not follow the National Democratic Alliance led by the Hindu nationalist Bharatiya Janata party, did not respond to these cuts, such as: Maharashtra, Andhra, Pradesh, West Bengal, in addition to Kerala and Tamil Nadu.

support the poor

Gasoline and diesel taxes
India’s Finance Minister, Nirmala Sitharaman – Image via Current Affairs

Indian Finance Minister Nirmala Sitharaman said in a tweet on Twitter that the government will provide subsidies to the poor for 12 cylinders of cooking gas annually, equivalent to 200 rupees per cylinder, due to record increases in cooking fuel prices.

The total value of cooking gas cylinders subsidy for the family in India is 2,400 rupees, which is funded by the government from the allocations of the “Yogjwala” plan, according to the minister.

The Minister of Finance added that the price of a cooking gas cylinder weighing 14.2 kilograms is -1003 rupees in the capital, New Delhi.

India has not subsidized cooking gas cylinders since mid-2020, and all consumers, including Yogjwala beneficiaries, get them at market price.

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