Maharashtra government to cut diesel prices by Rs 1.50 per litre

Ann Santiago
October 7, 2018

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. The petrol price in Mohali is yet to see further reduction and is priced at Rs 87.57 per litre and diesel at Rs 73.38 per liter, after the Centre's announcement of Rs 2.5 per litre reduction.

Thank you Hon PM @narendramodi ji and Union Minister @arunjaitley ji for reducing ₹2.50/litre on both Diesel and Petrol.

► Jharkhand CM Raghubir Das said: The state government has also made a decision to give an additional relief of Rs 2.5/litre on diesel in the state.

"Last time it were only the NDA ruled states, which made the Value-Added Tax reductions after the Rs 2 excise cut by the Centre previous year", he said.

Over two-thirds of 61 economists said in a Reuters poll the RBI would lift the repo rate at least once by the end of 2018, with over half stating that there would be a 25 basis points rise in October.

Several states had announced reduction in fuel prices by cutting sales tax/VAT.

The Indian government on Saturday sought to assure investors that the government would not go back to regulating fuel prices, a day after oil company shares tumbled on concerns about a return to a regime that has hurt their profits in the past.

Jaitley said the move followed Brent crude oil touching four-year high of Dollars 86 a barrel Wednesday and interest rates in United States reaching seven-year high. Hence, petrol and diesel prices in Tripura too has reduced by Rs 5 per liter. Stating that the government critics rejoiced the political consequences of the increase of the crude prices, Jaitley said when the price was reduced, the critics did a "volte face and argued that this is bad economics". "Apart from tax reduction in oil companies, if we also include a cut in other taxes, there would be an overall reduction of Rs 3 on fuel", dealers said.

Mr Jaitley expressed hope that the states will reduce state tax on fuel along with centre's move. Diesel prices in Chennai increased by 22 paise to Rs 79.79 a litre and by 20 paise to Rs 77.30 per litre in Kolkata. "So the impact will be Rs 10,500 crore in current fiscal which is only 0.05 per cent of fiscal deficit. Therefore they would be in a position to absorb this", he said.

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