OMG: Huge cut In Prices of petrol and Diesel


Finance Ministar Arun Jaitley on Thursday announced cut in excise duty in prices of petrol and diesel. The excise duty on petrol and diesel to be reduced by Rs 1.50 and the oil marketing companies oil marketing companies oill absorb Re. 1 taking the total cut in fuel prices to Rs. 2.50, he said.

 

He 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. Five BJP-ruled states--Gujarat, Maharashtra, Chhattisgarh, Assam and Tripura--responded by dropping fuel prices by Rs. 2.50, but not of petrol.

  

All BJP-ruled states are expected to cut fuel prices by this evening, said sources.



Jaitley said the finance ministry will write to the state government that as the central govt is cutting Rs 2.50 on both petrol and diesel, they also do the same. The finance minister said the excise duty cut would have an impact of Rs 10,500 crore on central government's tax revenues.










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