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

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Petrol, diesel cheaper by Rs 5 per litre in Jammu and Kashmir

Petrol and Diesel prices in Jammu and Kashmir have been slashed by Rs 5 per litre, the state government said Thursday.

"The state government this evening announced matching cut of Rs 2.50 per litre in fuel prices commensurate with the price cut of Rs 2.50, announced by the central government earlier today," an official spokesman said.

 

The new fuel prices would be effective in the state from this midnight.

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Maharashtra To Cut Diesel Rates By Rs. 4 Per Litre: Devendra Fadnavis

The government will bear the losses in the larger public interest, says Maharashtra chief minister Devendra Fadnavis.

NASHIK: 

A day after slashing Value Added Tax (VAT) on petrol in Maharashtra, chief minister Devendra Fadnavis said in Nashik today that even diesel prices will be reduced by around Rs. 4/litre.

He said the state government's decision to cut the VAT on petrol by Rs. 2.50/litre has been hugely welcomed by the people.

"We are now working out a formula to bring down the diesel prices by at least Rs. 4/litre. The government will bear the losses in the larger public interest," Fadnavis said.

On Thursday, shortly after the Centre announced reduction in prices of petrol-diesel, Maharashtra and at least another 10 states followed suit by reducing various local taxeslike VAT on petrol and diesel.

However, Maharashtra cut VAT only on petrol, attracting criticism that it was acting in the interests of the affluent sections of people.

The state and and Centre's decision collectively resulted in a drop in petrol prices by around Rs. 4.37/litre, against the promised Rs. 5/litre, from 6 am on Friday in Maharashtra, which had been reeling under the highest fuel prices anywhere in the country.

Accusing the government of taking people for a ride, Maharashtra Congress President Ashok Chavan said that instead of the Rs. 5/litre assured by Fadnavis, the actual reduction is Rs. 4.37/litre when pumps opened for business on Friday.

"This is blatant cheating of the masses. After you announced Rs. 5/litre, implement it instead of giving just Rs. 4.37/litre... This is nothing but propaganda by the BJP government," Chavan said.

However, the Federation of All Maharashtra Petrol Dealers Association (FAMPEDA), Chairman, Uday Lodh, while welcoming the reductions, pointed out that the daily price increase by the Oil Marketing Companies will continue as per the global crude oil price fluctuations.

"Moreover, Gujarat has given Rs. 2.50 relief per litre on both petrol and diesel, while Maharashtra has only cut VAT Rs. 2.50 on petrol. So, now the diesel business will be diverted to Gujarat, especially in the areas close to the borders," Lodh said.

 

Other pump owners expressed apprehensions that with the reduction in VAT on petrol in Maharashtra, diesel prices will gradually catch up with petrol if immediate relief is not provided.

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Petrol, Diesel Prices Cut In 11 States After Centre Reduces Rates By 2.5 Rupees/Litre

Petrol, diesel price cut: The price cuts would be effective from midnight tonight.

Eleven states announced cuts in prices of petrol and diesel on Thursday after the central government slashed excise duty on fuel. Earlier in the day, Finance Minister Arun Jaitley announced an excise duty cut of Rs. 1.5 per litre on petrol and diesel. Further, state-run oil-marketing companies will absorb a cut of Re 1 per litre on petrol and diesel, he said. This has brought down the prices of petrol and diesel by Rs. 2.5 per litre. Mr Jaitley then urged the states to follow suit after which seven states announced cuts in petrol and diesel rates.

The 11 states which announced cuts in petrol and diesel prices are Maharshtra, Madhya Pradesh, Jharkhand, Chhattisgarh, Assam, Uttar Pradesh, Haryana, Jammu and Kashmir, Himachal  Pradesh, Tripura, and Gujarat. The price cuts would be effective from midnight tonight.

The reduction in excise duty, only the second in four years of BJP-led NDA rule, will cost the central government a revenue of Rs. 10,500 crore in the current fiscal, said Mr Jaitley.

Petrol, diesel price cut  in Maharshtra
After the centre's announcement, Maharashtra Chief Minister Devendra Fadnavis announced a cut in petrol prices by Rs. 2.50 per litre. "Maharashtra government also decided to give additional relief of Rs. 2.50 per litre on petrol to give a total benefit of Rs. 5 per litre in the state of Maharashtra," Mr Fadnavis tweeted. However, the state did not reduce diesel rates.

Petrol, diesel price cut  in Jharkhand
Jharkhand government decided to give an additional relief of Rs. 2.5/litre on diesel in the state, Chief Minister Raghubar Das said on Twitter.

Petrol, diesel price cut  in Chhattisgarh
Chhattisgarh chief minister Raman Singh announced a cut of Rs. 2.50 on both petrol and diesel in the state.

Petrol, diesel price cut  in Assam
Assam government also decided to reduce Rs. 2.50 on both petrol and diesel, thus making it Rs.5 less than the prevailing rates, said Himanta Biswa Sarma, the state minister of Finance, Health & Family Welfare, PWD, Transformation & Development.

Petrol, diesel price cut in Uttar Pradesh
Uttar Pradesh chief minister Yogi Adityanath announced a cut of Rs. 2.5 per litre on petrol and diesel prices. Mr Adityanath said that the state will take an annual revenue cut of Rs. 4,000 crore as it passes on the relief in petrol, diesel rates to consumers.

Petrol, diesel price cut in Gujarat
Gujarat government also decided to reduce petrol, diesel prices by Rs. 2.5 per litre. This was announced by Chief Minister of Gujarat Vijay Rupani on Twitter.  

Petrol, diesel price cut in Madhya Pradesh
Madhya Pradesh also announced a cut of Rs. 2.5 per litre in petrol and diesel prices.

Petrol, diesel price cut in Tripura
Tripura also followed suit to cut petrol, diesel prices by Rs. 2.5 per litre, according to a report by news agency Indo-Asian News Service (IANS).

 

Petrol, diesel rate cut in Himachal Pradesh

The Himachal Pradesh government has decided to reduce prices of petrol and diesel by Rs.2.50 per litre, Chief Minister Jai Ram Thakur said. The state government has decided to reduce the value added tax (VAT) on petrol and diesel to effect a Rs. 2.50 per litre reduction in fuel prices in order to facilitate the general public, he was quoted as saying in a report by IANS.

Petrol, diesel price cut in Jammu and Kashmir

"The state government this evening announced matching cut of Rs. 2.50 per litre in fuel prices commensurate with the price cut of Rs. 2.50, announced by the central government earlier today," an official spokesman was quoted as saying in an IANS report.

Petrol, diesel prices slashed in Haryana

Welcoming the decision of the Central government, Haryana Finance Minister Abhimanyu said the Haryana government has also decided to reduce Value Added Tax (VAT) on petrol and diesel by about Rs. 2.50 per litre, reported IANS.

Last month, Rajasthan, Karnataka, Kerala and Andhra Pradesh had reduced value added tax (VAT) or sales tax to cushion consumers for a spate of price increases.

Almost half of the fuel price is made up of taxes. The centre currently levies a total of Rs.19.48 per litre of excise duty on petrol and Rs. 15.33 per litre on diesel. On top of this, states levy value-added tax (VAT). Before the reduction, Mumbai had the highest VAT of 39.12 per cent on petrol, while Telangana levies the highest VAT of 26 per cent on diesel.

 

Petrol and diesel prices have been hitting multiple highs every day in many cities. Petrol and diesel rates are decided on a daily basis by oil-marketing companies on the basis of the rupee-dollar rate and global crude oil prices.