Finance Minister Nirmala Sitharaman announces five major schemes: Fuel Price cut to LPG subsidy

22 May, 2022 | Pravina Srivastava

Sitharaman said on Saturday that the government has insulated farmers from global fertilizer price increases by providing an additional Rs 1.10 lakh crore in addition to the Rs 1.05 lakh crore alre...

Union Finance Minister Nirmala Sitharaman said on Saturday that the government has insulated farmers from global fertilizer price increases by providing an additional Rs 1.10 lakh crore in addition to the Rs 1.05 lakh crore already approved in the Union Budget for 2022-23.

Minister, who announced the cut in central excise duty on gasoline and diesel in a series of tweets, also stated that the government is dedicated to keeping prices of vital products under control.

She stated that the globe is experiencing difficult times, and that although the world is recovering from the Covid-19 pandemic, the Ukraine crisis has resulted in supply chain issues and shortages of numerous items. As a result, many countries are facing inflation and economic crisis.

“Despite the difficult international circumstances, we have guaranteed that vital items are not in short supply. Even some prosperous countries were not immune to shortages and disruptions. We are dedicated to keeping the cost of necessary things under control “she continued.

Union Minister stated that the Narendra Modi government is committed to the poor’s welfare and so average inflation under Modi’s administration has been lower than in prior administrations.

According to Sitharaman, Prime Minister has expressly requested that all government arms act with sensitivity and provide assistance to the ordinary man.

“We are announcing more actions to help our people today, in accordance with @PMOIndia @narendramodi’s pledge to serve the poor and common man. Even throughout the epidemic, our administration established a welfare paradigm, particularly through PM Garib Kalyan Anna Yojana. This is now recognized and appreciated all around the world “she stated.

Sitharaman further stated “Despite rising fertiliser prices around the world, we have shielded our farmers from price increases. In addition to the Rs 1.05 lakh crore fertiliser subsidy in the budget, an additional Rs 1.10 lakh crore is being provided to help our farmers.”

Sitharaman, who announced a cylinder subsidy under the Ujjwala scheme, encouraged governments to lower VAT on petroleum goods to help the common man.

“The Central Excise Duty on fuel and diesel will be reduced by Rs 8 per litre and Rs 6 per litre, respectively. This will lower petrol prices by Rs 9.5 per litre and diesel prices by Rs 7. It will cost the government around Rs 1 lakh crore per year in revenue “Sitharam explained.

“I urge other state governments, particularly those that did not implement a reduction at the last cycle (November 2021), to do the same and provide relief to the ordinary man,” she continued.

The lower gasoline and diesel prices will take effect on Sunday, according to officials.

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

“Our mothers and sisters will benefit from this. This will result in annual revenue of roughly Rs 6100 crore “she said.

The government is also lowering customs duties on raw materials and intermediaries for plastic products, where the country is heavily reliant on imports. Meanwhile, final product costs will be reduced as a result of this.

“Similarly, we are lowering the prices of iron and steel by adjusting customs duties on raw materials and middlemen. Import duties on some steel raw materials will be decreased. Some steel items will be subject to an export duty “she continued.

Cement availability is being improved, and the cost of cement is being reduced through better logistics, according to Sitharaman.

Wholesale inflation in India increased to 15.08 percent in April from 14.55 percent the previous month, according to government data released earlier this week, due to strong increases in the costs of fuel, metal, food and non-food articles, and chemical products.