What Consumers Pay For Petrol, Diesel After Price Cuts

Addressing a press conference in New Delhi today, Finance Minister Arun Jaitley said the government will write to all states to cut a portion of their tax as well on petrol, diesel.

The central government had incrementally taxed the fuels when the global crude prices had hit an all-time low to generate revenues for the state in order to rein in the fiscal deficit. Chandigarh has reduced the fuel prices by Rs 1.50. Their prices are likely to come down to below Rs 85 a litre and Rs 80 a litre respectively on Friday.

In a Facebook post titled "The oil prices and the hypocrisy of the opposition", Jaitley accused the government critics of doing a "volte face" by terming the cut in petrol and diesel prices by Rs 2.5 per litre by the Centre as "bad economics".

Prime Minister Narendra Modi freed up the price of diesel in October 2014 after a decade of regulation, saying it would encourage competition among vehicle fuel retailers and enhance efficiency in oil company services. "First we will see the order, then make a decision on petrol and diesel [prices]", he added. This will give huge relief to common citizens.

Finance Minister Arun Jaitley has announced that effective immediately, prices of petrol and diesel will be slashed by Rs 2.5, pan India. "Thus petrol & diesel wd be Rs. 5 cheaper in the State of Gujarat". In response, the governments of Maharashtra and Gujarat have also announced a reduction in excise duties. At a time when the Goods and Services Tax (GST) collections have clearly not kept pace with expectations, GST revenue collection for September crossed Rs 94,000 crore falling short of the one lakh crore target per month set by the government. However, in Mumbai, the diesel have gone up by 7 paise only. "#FuelPriceCut", tweeted the CM. "India's domestic indicators were consistent and encouraging", the Finance Minister said. On Saturday, the petrol was being sold at Rs 81.68 per litre and the diesel has been priced at Rs 73.79 per litre. Petrol in Maharashtra had crossed Rs 91 per litre and diesel was selling above Rs 80 per litre before the state and central government made a decision to lower taxes.