India

Centre Cuts Petrol, Diesel Prices by ₹2.50, Some States Match A matching cut by the states will effectively bring down the prices of petrol and diesel by ₹5

@otuslive

FINANCE MINISTER Arun Jaitley announced a cut in the prices of petrol and diesel by ₹2.50 per litre across the country.

The excise duty will be reduced by ₹1.50 per litre and ₹1 will be absorbed by the oil marketing companies, Jaitley said at a presser in New Delhi.

“We are writing to the state governments that as the central government is cutting ₹2.50 on both petrol & diesel, they do the same too, Jaitley said.

“₹10,500 Crore will be the impact of excise duty cut this year.”

A matching cut by the states will effectively bring down the prices of petrol and diesel by ₹5, providing relief from the galloping fuel prices that began after the rupee fell to a new low vs. the dollar in August.

The new regime of daily price revision has meant that prices of petrol and diesel continuously hit record highs in many states. A sliding rupee has added to the woes.

On Wednesday, Brent crude oil hit a four-year high of $86.74 a barrel. And the rupee continued its fall vs. the dollar on Thursday hitting a fresh low of 73.77.

A litre of petrol was selling for ₹91.34 in Mumbai and for ₹84 in Delhi. A litre of Diesel was selling for ₹80.10 in Mumbai and ₹75.45 in Delhi.

Immediately after the announcement, some states welcomed the move and announced a matching cut of ₹2.50 in state taxes and effectively cutting the price by ₹5 per litre.

The new prices will be effective immediately after the issue of notification by the oil marketing companies, Jaitley said.

#Rs. 2.50: AS IT HAPPENED

Oil Minister on the Cut

Gujarat Cuts Prices

Maharashtra Too

Assam

Jharkhand

Tripura

Chhattisgarh

-ENDS-

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