Monday, December 17, 2018
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Centre Drops Petrol, Diesel Price by Rs. 2.50 per Litre, Urges States to do Their Bit

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In a bid to offer relief to the people of the country from the rise in fuel prices, the central government had cut down petrol and diesel price by 2.50 rupees per litre, on Thursday. While the centre has reduced excise duty by 1.50 rupees, the oil marketing companies has also decreased the oil prices by 1 rupee, making it 2.50 rupee cut in the fuel prices for the citizens.

Finance Minister has also urged the state government to reduce the Value Added Tax in the fuel prices by 2.50 rupees, to make it a five-rupee relief for the citizen in the fuel prices. “I am sure the states will also start delivering immediately,” Mr Jaitley said.

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In response, the BJP led states in the country has agreed to the centre’s decision, reducing the VAT by 2.5 Rs. per litre. States such as Gujarat, Maharashtra, Chhattisgarh, Assam and Tripura are expected to cut the prices by the evening. However, there has been no confirmation by the governments of other states.

Talking about the rise in fuel prices, the finance minister stated that the crude oil price has touched a four-year high of $86 a barrel, while interest rates have touched a seven-year high.

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The cut in excise duty will see a drop in government’s tax revenue by Rs. 10,500 crores, knowing the fact Government receives their major source of income from the taxes in fuel prices.

Interestingly, post the announcement by the finance minister, Delhi’s chief Minister, in a tweet, stated that Government should rather decrease the excise duty by 10 rupees per litre.

“It is a sham. The Centre should have at least reduced prices by Rs. 10 per litre,” he tweeted.

The petrol price in Delhi currently stands at 84 rupees per litre, while diesel is being sold at Rs. 75.45.

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