Petrol, diesel prices slashed by Rs 2.50 per litre

Petrol, diesel prices slashed by Rs 2.50 per litre

Petrol, diesel prices slashed by Rs 2.50 per litre

The cut includes a reduction in excise duty of 1.50 rupees per litre, which will reduce government revenue by 105 billion rupees, Jaitley said.

While some states like Andhra Pradesh and Karnataka cut the fuel prices weeks ago by announcing a cut to the Value-Added Tax charged by the states, Tamil Nadu, Telangana and Kerala had maintained that it was up to the Central government to reduce the prices. In a tweet he said, "Madhya Pradesh has also reduced VAT [Value Added Tax] on fuel as a result of which the people will get a relief of Rs 5".

The price cut would be effective from midnight tonight.

The states have reduced the sales tax and VAT charged on diesel and petrol. While Jharkhand has cut diesel prices by Rs 2.50, but there has been no announcement of petrol yet.

Finance Minister Arun Jaitley announced a cut of R s 2.50 percent in fuel prices.

Fuel prices reached new highs in other cities too - with petrol costing Rs 84 per litre in New Delhi, Rs 87.33 per litre in Chennai and Rs 85.80 per litre in Kolkata on Thursday.

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The government on Thursday announced an excise duty cut of Rs 1.50 a litre for petrol and diesel.

Jaitley said that in addition to excise duty being cut by Rs 1.5 per litre, oil marketing companies would also take a hit of Re 1 per litre as well.

After Centre's announcement, the Congress dared Prime Minister Narendra Modi to bring the fuel prices back to the 2014 level instead of throwing a "pittance of one or two rupees" at the public.

Petrol prices were Thursday hiked by 15 paise a litre and diesel by 20 paise, according to price notification of state-owned oil firms.

"When the prices go up the Centre receives a fixed amount per litre, whereas the revenue of states go up". 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.

Global oil prices have risen to four-year highs above $85 a barrel on fears of a global supply crunch, prompting US President Donald Trump to repeatedly demand the Organization of Petroleum Exporting Countries to lower prices.

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