Centre losing ₹2.2L cr in 2 fuel duty cuts: FM Nirmala Sitharaman

The revenue loss of ₹2.2 lakh crore due to two rounds of duty cuts on petrol and diesel will be borne entirely by the central government, Union finance minister Nirmala Sitharaman said on Sunday, refuting accusations by the Opposition that the reductions were made on the portion of levies that is shared with the states.

“The excise duty reduction of ₹ 8/litre on petrol and ₹6/litre on diesel (effective from today) has entirely been made in Road & Infrastructure Cess (RIC). Even in November ‘21, the reduction of ₹ 5/litre in petrol and ₹ 10/litre in diesel was entirely made in RIC,” the finance minister said in a Twitter thread on Sunday.

Revenue from the roads and infrastructure cess is not shared with the states.