The state governments in Maharashtra, Gujarat, Chhattisgarh, Jharkhand and Tripura today reduced the prices of petrol and diesel by Rs 2.5 soon after the Finance Minister Arun Jaitley announced a similar cut in fuel prices. After the tax cut at central and state level, both petrol and diesel will be cheaper by Rs 5 in these states.
In a press briefing, Jaitley said that the Centre will cut Rs 1.50 in excise duty on fuel while an additional Re 1 will be absorbed by the Oil Marketing Companies (OMCs). The Finance Minister had also urged the state governments to cut the VAT on fuel by an equal amount. Acting on Arun Jaitley’s advice, chief ministers of Maharashtra and Gujarat reduced state taxes on petrol and diesel.
“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,” Gujarat CM tweeted.
Maharashtra CM Devendra Fadnavis thanked PM Modi and Finance Minister Arun Jaitley for excise duty cut. “Maharashtra Government also decided to give additional relief of Rs 2.5/litre on Petrol to give total benefit of Rs 5/litre in the State of Maharashtra,” Fadnavis tweeted.
Jaitley said the move will have an impact of Rs 10,500 crore on the revenues of central government this fiscal but the government is confident of achieving the fiscal deficit target.
“The Brent oil since yesterday has crossed 86$/bbl which is the highest in the last four years. Along with this is the additional development that in the US the interest rates have climbed to 3.2 per cent, which is also highest ever. Now, both these developments have led to a situation where there is a significant impact across global markets that we have seen today. Already a large number of steps have been taken in this regard,” Jaitley said.