Central government cuts fuel prices by Rs 2.50 a litre in India

Share
Central government cuts fuel prices by Rs 2.50 a litre in India

India is cutting prices of petrol and diesel by 2.50 rupees ($0.03) a litre, Finance Minister Arun Jaitley said on Thursday, the government's latest step to tackle the impact of a sharp rise in crude oil prices and a weak local currency.

Excise duty to be reduced by Rs.1.50 & OMCs will absorb 1 rupee.

The central government on October 5 cut the prices of petrol and diesel by Rs 2.50 per litre.

Kerala Finance Minister Thomas Isaac however, said his government would not cut fuel prices, News18 reported.

"Instead of asking the states to cut the levy by another Rs 2.50, the government should have effected meaningful reduction", it said.

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.

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

"We have authorised the oil marketing companies to raise $10 billion through foreign currency oil bonds", he added. But analysts said the announcement on Thursday shows there is still a heavy government hand in the industry.

The price cuts would be effective from midnight tonight.

In Kolkata, the petrol price was Rs 83.35 per litre while that of diesel was Rs 74.80 this morning. HPCL shares fell 14.7% to Rs 214.40, BPCL was down 17.08% at Rs 313 and Indian Oil dived 14.23% to Rs 134.95. As a measure to curb the growing menace, the government has finally stepped in by trimming down the excise duty on fuel prices to bring in relief to the end users. But with a weakening rupee, it will likely have fewer options in the form of import-related tax cuts.

The cuts will cost the Centre Rs 10,500 crore in tax revenues, he said.

The hike in duties had led to excise collections from petro goods more than doubling in last four years - from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18. Jaitley expressed confidence in maintaining the fiscal deficit target for the current financial year despite the reductions. "After the cut in petrol and diesel prices, let's pray to have elections every month or perhaps every week", one tweet said. Any further revenue loss, however, could widen the fiscal deficit.

Share

Advertisement

Related Posts

First evidence of moon outside our solar system: Astronomers
Jupiter's moons are believed to have formed from a ring of material; but again, none of Jupiter's moons are the size of Neptune . In the meantime, a new release of Kepler data smoothed away many of those bumps, weakening the original case for a moon search.

Rosa weaker, but expected to flood Mexico and U.S. Southwest
This could bring "life-threatening flash flooding" and "dangerous debris flows and landslides", the hurricane center said. Gary Herbert declared a state of emergency Tuesday evening in advance of potential flooding from the remnants of Rosa.

One officer dead, four hurt after shooting in SC
Florence County Emergency Management Department stated that "The active shooting situation is over and the suspect is in custody. He also allegedly held children hostage inside, authorities said. "This is a hard and difficult day for us", Nunn said.

Europa League: Keown reveals Arsenal player that was "problem" for Unai Emery
Meanwhile, NAIJ.com had earlier reported that Arsenal recorded a 3-0 victory over Qarabag in the Europa League . He has good ability with the ball, good vision and now I understand why Arsenal paid a lot of money for him.

Typhoon Kong-Rey unlikely to directly hit Taiwan: Central Weather Bureau (CWB)
EDT (0435 UTC) and the Atmospheric Infrared Sounder or AIRS instrument aboard analyzed cloud top temperatures in infrared light. Japan's Meteorological Agency has issued a red weather warning for Okinawa, southern Kyushu Island and the Amani region.

Yazidi Islamic State Victim, Congolese Doctor Win 2018 Nobel Peace Prize
Reiss-Andersen said the committee had not yet been able to reach Murad or Mukwege to tell them they had won the prize. Mukwege and Nadia Murad have been named the winners of the Nobel Peace Prize on Friday, Oct. 5, 2018.

NY mayor directs Finance Department to investigate Trump inheritance
New York's state government, meanwhile, has been aggressive against the Trump administration and the president's charity. The White House dismissed the report as a "misleading attack against the Trump family by the failing New York Times ".

Trump Accuses Soros Of Paying Women To Confront Flake
Flake in an elevator last week - claiming they are being paid to "make Senators look bad". Hatch waved and told them to " grow up " as he entered an elevator.

Toddler Shreds $1K in Cash
"I called the guy the next morning and he said, 'Oh, we might be able to help you here, ' and I was shocked", Ben Belnap said. After saving for about a year, they finally had enough to pay back a family member for their season tickets.

Tail of hurricane Leslie to lash Britain with wet and windy weather
Leslie could become a weak hurricane based on the latest forecast, but it will not threaten land as a tropical system. Leslie is sending large swells to Florida , but is not a direct threat to the U.S.

© 2015 ExpressNewsline. All Rights reserved.