Editor's Pick: Fuel taxes cut, fresh subsidy on LPG cylinders

After the Reserve Bank of India (RBI) hiked interest rates in a surprise meeting a couple of weeks ago, signifying a shift in policy that puts the focus on inflation before growth, the Finance Ministry has now moved to rein in runaway inflation by introducing duty cuts on petroleum products, a ₹200 subsidy on LPG cylinders for the poor, and a rejig of import duties on plastic and steel products. Finance Minister Nirmala Sitharaman announced a reduction in central excise duty on petrol by ₹8 per litre, and on diesel by ₹6. She pointed out that this would translate into retail prices on these fuels dropping by ₹9.5 per litre and ₹7 per litre, respectively. Ms. Sitharaman, reiterating what the Prime Minister had said to non-BJP ruled states last month, exhorted all States, “especially those that had not cut State levies when central taxes on fuel products were cut the last time, to implement a similar cut and give relief to the common man”. The Budget session in March had seen multiple disruptions owing to protests by Opposition parliamentarians over consecutive fuel price hikes. As for LPG cylinders, the Finance Minister announced that a subsidy of ₹200 per gas cylinder for up to 12 cylinders a year would be granted to over nine crore beneficiaries of the PM Ujwala Yojana. Customs duties and import duties on plastic and steel raw materials that see high import volumes are also being reduced. Emphasising once again the impact of the Ukraine conflict on supply chains and shortages of various goods, Ms. Sitharaman said the world is passing through difficult times, “resulting in inflation & economic distress in a lot of countries…We are committed to ensure that prices are kept under control”. The report on fuel tax cuts appears on the front page of The Hindu as the cuts assume significance with inflation rates having either neared or surpassed record-highs in the past few months. Retail inflation soared to 7.8% in April, the highest since the NDA government took charge in 2014, and wholesale inflation hit a multi-decade high of 15.1%. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor‘s Pick and more. Click here The Hindu Explains Has Kerala changed it stance on the NEP? Why is Turkey against Sweden, Finland joining NATO? The Hindu’s Daily Quiz Before last week, India had not reached the semi-finals of the Thomas Cup Badminton Championship since which year? 2006 1984 1979 1990 To find out the answer and play the full quiz, click here [logo] Editor's Pick 22 MAY 2022 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( Fuel taxes cut, fresh subsidy on LPG cylinders After the Reserve Bank of India (RBI) [hiked interest rates]( in a surprise meeting a couple of weeks ago, signifying a shift in policy that puts the focus on inflation before growth, the Finance Ministry has now moved to rein in runaway inflation by introducing duty cuts on petroleum products, a ₹200 subsidy on LPG cylinders for the poor, and a rejig of import duties on plastic and steel products. Finance Minister Nirmala Sitharaman [announced a reduction in central excise duty]( on petrol by ₹8 per litre, and on diesel by ₹6. She pointed out that this would translate into retail prices on these fuels dropping by ₹9.5 per litre and ₹7 per litre, respectively. Ms. Sitharaman, reiterating what the Prime Minister had said to non-BJP ruled states last month, exhorted all States, “especially those that had not cut State levies when central taxes on fuel products were cut the last time, to implement a similar cut and give relief to the common man”. The Budget session in March had seen multiple disruptions owing to protests by Opposition parliamentarians over consecutive fuel price hikes. As for LPG cylinders, the Finance Minister announced that a subsidy of ₹200 per gas cylinder for up to 12 cylinders a year would be granted to over nine crore beneficiaries of the PM Ujwala Yojana. Customs duties and import duties on plastic and steel raw materials that see high import volumes are also being reduced. Emphasising once again the impact of the Ukraine conflict on supply chains and shortages of various goods, Ms. Sitharaman said the world is passing through difficult times, “resulting in inflation & economic distress in a lot of countries…We are committed to ensure that prices are kept under control”. The report on fuel tax cuts appears on the front page of The Hindu as the cuts assume significance with inflation rates having either neared or surpassed record-highs in the past few months. Retail inflation soared to 7.8% in April, the highest since the NDA government took charge in 2014, and wholesale inflation hit a multi-decade high of 15.1%. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor‘s Pick and more.  [Click here]( The Hindu Explains [Arrow][Has Kerala changed it stance on the NEP?]( [Arrow][Why is Turkey against Sweden, Finland joining NATO?]( The Hindu’s Daily Quiz Before last week, India had not reached the semi-finals of the Thomas Cup Badminton Championship since which year? - 2006 - 1984 - 1979 - 1990 To find out the answer and play the full quiz, [click here]( Today’s Best Reads [[Explained | Why is Turkey against Sweden, Finland joining NATO?] Explained | Why is Turkey against Sweden, Finland joining NATO?]( [[Delhi’s historic mosques’ fountain connection] Delhi’s historic mosques’ fountain connection]( [[Azovstal steelworks | Fall of the last holdout] Azovstal steelworks | Fall of the last holdout]( [[Govt. waives import duty on some raw materials for steel industry, export duty on iron ore raised by up to 50%] Govt. waives import duty on some raw materials for steel industry, export duty on iron ore raised by up to 50%]( Copyright @ 2022, THG PUBLISHING PVT LTD. 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