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

Manchester United in trouble after arriving late for Champions League match
Jose Mourinho was not going to get into a war of words with former player Paul Scholes after the 0-0 draw against Valencia . Mourinho felt a lack of confidence from United going forward proved costly.

So everyone got the name of Harry and Meghan's dog completely wrong
They won't be able to hold a koala like Prince Charles and Camilla did when they visited Adelaide in 2012. One-year-old Edith Morgan celebrated her first Royal Visit by meeting Prince Harry .

Susan Collins will vote to confirm Brett Kavanaugh to the Supreme Court
The judiciary committee voted to advance Kavanaugh's nomination to the full Senate, which is expected to attempt a vote Friday. Ford accused Kavanaugh of sexually assaulting her at a party in suburban Maryland when both were in high school 36 years ago.

Brett Kavanaugh: Key senators back embattled Supreme Court pick
Ford privately shared her story with the ranking Democrat on the Senate Judiciary Committee , Sen. Jeff Flake as he was on his way to the Senate Judiciary Committee's vote on September 27.

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.

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.

India vs Windies, 2018: 1st Test, Day 2 - Statistical Highlights
The match is underway in Rajkot , Jadeja's home ground and the crowd goes insane watching Jadeja take on the bowlers in style. Rishabh Pant has been in superb batting form in the recent past and has treated star bowlers with disdain in the past.

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.

Kershaw, Dodgers Hope To Increase Series Lead Over Braves
He drove in Joc Pederson , who was hit by a pitch on a 1-2 slider with two outs, and Justin Turner, who walked. If Kershaw had gone first, he would be on four days' rest, while Ryu would be on six days' rest for Game 2.

Twitter adds data-saving mode to its mobile apps
Enabling it simply requires a visit to the Twitter app settings and the new Data Saver option toggled to on. The " data saver " feature is a new tool that was added to the social media site late on Wednesday night.

© 2015 ExpressNewsline. All Rights reserved.