New Delhi, Oct 4: The central government on Thursday reduced petrol and diesel prices by Rs 2.50.
While addressing a press conference, Union Finance Minister Arun Jaitley said “excise duty to be reduced by Rs.1.50 and Oil marketing companies (OMCs) will absorb 1 rupee. So, a total of Rs.2.50 will be reduced on both diesel and petrol”.
“We are writing to the state governments that as the centre is cutting Rs 2.50 on both petrol and diesel, they do the same”, he added.
Last month, the governments of Karnataka, West Bengal, Rajasthan and Andhra Pradesh cut taxes on fuels.
The Union Minister further asserted Rs 10,500 Crore will be the impact of excise duty cut this year.
On inflation, he said that several macroeconomic data is indicating stable measures. The first quarterly results have shown an 8.2% growth, adding Inflation is still moderate less than 4%.
After Jaitley’s announcement, Maharashtra Chief Minister Devendra Fadnavis took to social media and tweeted “Maharashtra Government decided to give additional relief of ₹2.5/litre on Petrol to give a total benefit of ₹5 per litre in the State of Maharashtra”.
Meanwhile, Gujarat has also decided to reduce Rs.2.50 on both petrol and diesel. Thus petrol and diesel will be Rs. 5 cheaper in the state.
In the recent past, transport fuel prices have continued on a daily record-breaking upward movement with petrol inching closer to Rs 84 in the national capital and having already crossed the Rs 91 a litre mark in Mumbai.
Meanwhile, Brent crude oil hit $86 per barrel on Wednesday, marking its highest level in 4 years.