After months of torturing the general public with soaring fuel prices, Finance Minister Arun Jaitely on Thursday announced a petty reduction of Rs 2.5 per litre on both diesel and petrol prices across the country.
The state governments in nearly all BJP-ruled states including Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Jharkhand, Assam, Haryana, Himachal Pradesh, Uttar Pradesh, 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.
Petrol, diesel price cut: Eleven states announced cuts in prices of petrol and diesel on Thursday.
Petrol was sold at 83.85 rupees a litre, while diesel was sold at 75.25 a litre on October 3, according to state-run retailer Indian Oil Corp's website.
Gujarat had announced a price cut to the same tune. Maharashtra and Gujarat governments were among the first to announce a matching Rs 2.50 cut. The government has upped its ante and steps has been taken to cut down on the borrowing by Rs 70,000 crore and it has allowed OMCs to raise $10 billion.
Chhattisgarh chief minister Raman Singh announced a cut of Rs 2.50 on both petrol and diesel in the state.
Brent oil on Wednesday crossed $86 per barrel, which is the highest in the last four years, and rising interest rates in the United States have a significant impact across global markets, said Jaitley. They have reduced the price seeing people's difficulty.
► Tripura government has also slashed the prices of fuel.
Karnataka chief minister HD Kumaraswamy said he would not reduce taxes on fuel.
This is the second time in one year that the Centre has cut excise duty on petrol and diesel as rising prices pinch the common man.
So far, 11 States have joined the Centre in cutting their tax rates on petrol and diesel by ₹2.5 per litre, with BJP president Amit Shah saying that all BJP-led States have agreed to implement the rate cuts.
Before the reduction, Mumbai had the highest Value-Added Tax of 39.12 per cent on petrol, while Telangana levies the highest Value-Added Tax of 26 per cent on diesel. The total impact of the excise duty cut on us for the entire fiscal would have been Rs 21,000 crore.