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Petrol, diesel prices slashed by Rs 2.50 per litre

04 October 2018

The government on Thursday announced an excise duty cut of Rs 1.50 a litre for petrol and diesel. Arun Jaitley announced that the Modi government will slash excise duty on fuel by Rs 1.50 per litre.

Besides poll-bound Rajasthan and Madhya Pradesh, the governments of Chhattisgarh, Assam, Tripura, Jharkhand, Uttar Pradesh and Haryana also announced cuts by Rs 2.50.

Price cut in states like Gujarat and Maharashtra would be Rs 5 after they matched the announcement with a similar reduction in local sales tax or VAT rates.

Chief Minister of Maharashtra, Devendra Fadnavis, has also tweeted that the state government will reduce prices of petrol and diesel, with the former now costing Rs 5 less.

Meanwhile, Maharashtra, Gujarat Government also chose to give additional relief of ₹2.5/litre on Petrol to give total benefit of ₹5/litre in the State. He said the Kerala government wants the Centre to remove taxes on petrol and diesel that were imposed when the BJP-led government imposed in 2014 after coming to power.

"It will be clear after this, which States mean what they write and actually implement the Value-Added Tax cut", Mr. Jaitley said. Only a few weeks ago, multiple media reports, quoting anonymous senior government officials, indicating that the government had no plans of cutting excise duty. PM Modi consulted Union Finance Minister Arun Jaitley and Oil Minister Dharmendra Pradhan.

Fuel prices have been consistently hitting record highs since mid-August.

Transport fuel prices have continued on a daily record-breaking upward movement with petrol inching closer to Rs 84 in Delhi and having already crossed the Rs 91 a litre mark in Mumbai.

Jaitley said the move followed Brent crude oil touching four-year high of Dollars 86 a barrel Wednesday and interest rates in U.S. reaching seven-year high. Petrol rates increased by Rs 0.15 per litre and diesel rates increased by Rs 0.20 per litre on Thursday. Absorbing this Rs 10,500 crore in increased collection and maintaining fiscal deficit I am confident we will be able to do that. "They are only interested about their party", she said.

Petrol, diesel prices slashed by Rs 2.50 per litre