While Rs 1.5 will be reduced in the excise duty, Oil Marketing companies will absorb Rs 1 reduced in price.
Jaitley said he would write to state governments to also immediately cut the value added tax on petroleum products by Rs 2.5 so that consumers receive a benefit of Rs 5 per litre on fuel. In response, the governments of Maharashtra and Gujarat have also announced a reduction in excise duties.
► Jharkhand CM Raghubir Das said: The state government has also chose to give an additional relief of Rs 2.5/litre on diesel in the state.
Finance Minister Arun Jaitley has announced that effective immediately, prices of petrol and diesel will be slashed by Rs 2.5, pan India. "The government will bear the losses in the larger public interest", Fadnavis said. After continuously being on an ascent for over three months, the fuel prices are likely to witness a dip with effect from Thursday midnight.
On Thursday, the price of petrol was raised by 15 paise a litre while that of diesel was hiked by 11 paise a litre.
The shares of Indian oil marketing companies sank after the announcement, with Indian Oil Stocks down by 18.24 percent, HPCL stocks tumbled by 22 percent and BPCL stocks declined by 19 percent.
Brent, the benchmark for more than half the world's oil, has touched United States dollars 86 per barrel mark, the highest in four years. After much chaos regarding the fuel rate, the government has chose to cut down the price of the fuel. The government has upped its ante and steps has been taken to cut down on the borrowing by Rs 70,000 crore and it has allowed OMCs to raise $10 billion.
Jaitley was still speaking as of last updating this report.
According to the Finance Minister, the move will have an impact of Rs 10,500 crore this fiscal but the government is confident of achieving the fiscal deficit target.
Petrol was sold at 83.85 rupees a litre, while diesel was sold at 75.25 a litre on October 3, according to state-run retailer Indian Oil Corp's website.
- John Paul Stevens says Kavanaugh shouldn't be on Supreme Court
- UFC 229 Embedded: Vlog Series - Episode 1
- Paul Pogba rallies behind Manchester United
- Trump Accuses Soros Of Paying Women To Confront Flake
- Jadeja hits debut ton as India declare on record 649-9
- Canadians duty-free limit increases to $150 following USMCA deal
- Unemployment rate drops to 3.7 percent - lowest since 1969
- 1 in 3 U.S. adults eat fast food each day
- Pompeo to travel to meet Kim Jong Un in Pyongyang next week
- Trilateral NAFTA revamp deal struck