Centre Cuts Petrol, Diesel Prices By Rs. 2.50, Asks States To Make It Rs. 5

[Kool_SRG]

Fuel price: Finance Minister Arun Jaitley appealed to the states to match the centre's effort by reducing value-added tax or VAT by Rs. 2.50 so that the total benefit to citizens is at least Rs. 5

• HIGHLIGHTS
• Gujarat, Maharashtra immediately announced fuel price cuts of Rs.2.50
• All BJP-ruled states may announce price reductions by evening: Sources
• Petrol and diesel prices are at an all-time high

Finance Minister Arun Jaitley today announced marginal relief for citizens from runaway fuel prices with oil duty cut of Rs. 1.50 and another Re 1 drop by oil marketing companies. He blamed rising crude oil prices in the international markets for the rise in fuel prices in India.

He appealed to the states to match the centre's effort by reducing value-added tax or VAT by Rs. 2.50 so that the total benefit to citizens is at least Rs. 5. Four BJP-ruled states -- Gujarat, Maharashtra, Chhattisgarh and Tripura -- immediately responded by dropping fuel prices by Rs. 2.50. All BJP-ruled states are expected to cut fuel prices by this evening, said sources.

The Rs. 2.50 benefit for citizens is within the control of the government and oil marketing companies, the finance minister said. "I am sure the states will also start delivering immediately," Mr Jaitley said, amid the opposition's allegations that the economy is under severe stress.

The excise duty cut would dent the government's tax revenue by Rs. 10,500 crore, the finance minister said. Taxes on petrol and diesel, which account for more than a third of retail fuel prices, are one of the biggest sources of income for the government.

Minutes after Mr Jaitley's announcement, the Gujarat government slashed Rs. 2.50 on petrol and diesel.

Finance Minister Sh @arunjaitley Ji has announced Rs.2.5 cuts in petrol & diesel prices, reciprocating positively to FM's announcement, the Govt Of Gujarat has also decided to reduce Rs.2.50 on both petrol & diesel. Thus petrol & diesel wd be Rs. 5 cheaper in the State of Gujarat

- Vijay Rupani (@vijayrupanibjp) October 4, 2018

BJP-ruled Maharashtra also responded to the finance minister's call to lower oil prices.

Maharashtra Government also decided to give additional relief of ₹2.5/litre on Petrol to give total benefit of ₹5/litre in the State of Maharashtra.

- Devendra Fadnavis (@Dev_Fadnavis) October 4, 2018

Arun Jaitley's announcement followed petrol and diesel prices touching a new high. In Delhi, where oil prices are the lowest among big cities, petrol is being sold at Rs. 84 per litre and diesel at Rs. 75.45.

Mr Jaitley said crude oil touched four-year high of $86 a barrel on Wednesday and interest rates in the US have reached a seven-year high.

 

Following the announcement, the stocks of oil marketing firms such as Hindustan Petroleum, Indian Oil Corporation and Bharat Petroleum fell by over 18 per cent as they would be sharing the burden of the fuel price cut at a time when crude prices are high.

[Kool_SRG]

Slight relief from soaring Fuel Prices...  Thanks.

[Kool_SRG]

Maharashtra, Gujarat announce additional cut of Rs 2.5 per litre on fuel prices

The reduction in petrol and diesel price includes a Rs 1.5 cut in excise duty from the revenue department and the remaining Re 1 will be borne by oil and marketing companies.

Following the Centre’s announcement to reduce prices of both petrol and diesel on Thursday, Maharashtra and Gujarat also announced an additional cut of Rs 2.5 per litre in fuel prices.

Finance Minister Arun Jaitley earlier today announced a Rs 2.5 cut in per litre price of diesel and petrol and asked state governments to go for a matching reduction. The minister said the centre would reduce the tax rate by Rs 1.5 per litre while oil marketing companies would absorb another Re 1.

The reduction comes ahead of assembly elections in five states: Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana and Mizoram.

Petrol prices had gone up by 15 paise a litre and diesel by 20 paise on Thursday, pushing retail prices in Delhi to an all-time high of Rs 84 per litre and diesel to Rs 75.45. In Mumbai, petrol prices have reached Rs 91.34 litre.

Jaitley said the reduction in fuel price wasn’t bad economics.

“This is perfectly good economics... we want consumers to spend money on other items also... and to do it without impacting the fiscal deficit is still good economics,” Jaitley announced after inter ministerial discussions with petroleum ministry.

“If reducing oil prices is good politics, so be it,” he said.

On the centre’s recommendation to the states, Jaitley said: “Now all states will be on test... Will have to see what states where leaders were indulging in lip sympathy and tweeting, what would these states do”.

The minister recalled that the central government had reduced taxes on fuel last October by Rs 2 and only states ruled by the BJP-led NDA coalition had announced matching cut in state taxes.

This time, he expected the NDA-ruled states to follow suit and reduce the state’s value added taxes.

He insisted that telling oil marketing companies to absorb Re 1 didn’t imply going back on deregulation of prices. “But the fact is that we have to react to a situation...if without impacting the fiscal deficit I can give relief, and I had always said that our ability to give relief will not be at the cost of fiscal deficit,” he said.

Jaitley said the move followed Brent crude oil touching four-year high of USD 86 a barrel Wednesday and interest rates in US reaching seven-year high.

Inflation in India, however, is still moderate at less than 4 pe cent and higher direct tax collections give comfort with regard to fiscal deficit, he said adding domestic macroeconomic indicators are strong and stable, except for current account deficit (CAD).

[Kool_SRG]

Finance Minister Sh @arunjaitley Ji has announced Rs.2.5 cuts in petrol & diesel prices, reciprocating positively to FM’s announcement, the Govt Of Gujarat has also decided to reduce Rs.2.50 on both petrol & diesel. Thus petrol & diesel wd be Rs. 5 cheaper in the State of Gujarat

— Vijay Rupani (@vijayrupanibjp) October 4, 2018

Maharashtra Government also decided to give additional relief of ₹2.5/litre on Petrol to give total benefit of ₹5/litre in the State of Maharashtra.

— Devendra Fadnavis (@Dev_Fadnavis) October 4, 2018

[Indiatoday2030]

In 2.5 rs center contributed only 1.5 rs. Other 1 rs is from the companies.

 

Already AP and knataka govt reduced by 2 rs a month back.

[Kool_SRG]

Just now, Indiatoday2030 said:

In 2.5 rs center contributed only 1.5 rs. Other 1 rs is from the companies.

 

Already AP and knataka govt reduced by 2 rs a month back.

Re.1 is to be born by Oil companies...

Yes Kerala, AP & Karantaka will not see any reduction at state levels since they have already done it some time back.

[uttermost]

lol.

[manadonga]

Karnataka already 4 rs taggindi south mottalo karnataka 2 rs less than any other state 

[uttermost]

11 minutes ago, manadonga said:

Karnataka already 4 rs taggindi south mottalo karnataka 2 rs less than any other state 

so victory for Congress aa?  

[JANASENA]

2 hours ago, Kool_SRG said:

Slight relief from soaring Fuel Prices...  Thanks.

4-5 Rs tho em relief baa ? atleast oka 20 Rs aithey anukovachu

[Kool_SRG]

Just now, JANASENA said:

4-5 Rs tho em relief baa ? atleast oka 20 Rs aithey anukovachu

Antha expect cheyyaku ayina ee relief 4-5 days neutralize ayipotadi the way crude is going up & Rupee is sliding down 

 

Ippudu almost 92 petrol per litre in mumbai , ippudu 5 taggithe Rs. 87 malli inko vaaram lo mostly back to same rate as of now vacheyochu....

[JANASENA]

8 minutes ago, Kool_SRG said:

Antha expect cheyyaku ayina ee relief 4-5 days neutralize ayipotadi the way crude is going up & Rupee is sliding down 

Ippudu almost 92 petrol per litre in mumbai , ippudu 5 taggithe Rs. 87 malli inko vaaram lo mostly back to same rate as of now vacheyochu....

14

Baa nuvvu Bombay lo untava?  

[Kool_SRG]

3 minutes ago, JANASENA said:

Baa nuvvu Bombay lo untava?  

Sorry Mumbai lo 

[JANASENA]

6 minutes ago, Kool_SRG said:

Sorry Mumbai lo 

  

[TOM_BHAYYA]

Ivanni jujubi.. maa rich state cm Dalits n minorities ki 50% subsidy