Four states announce additional cut in fuel prices after Centre’s move

Four states announce additional cut in fuel prices after Centre’s move

The reduction follows petrol and diesel prices soaring to new highs.

Uttar Pradesh also reduced the fuel price by Rs 2.5 per litre giving a relief to consumers.

While Gujarat and Chhattisgarh announced cut in both petrol and diesel prices, the Maharashtra government announced a reduction of Rs 2.50 on petrol and said that a decision on diesel prices will be taken soon.

India is the third largest importer of crude oil and rising global oil prices are inflating domestic transport fuel costs in a strong demand environment.

Earlier in September, a complete Bharat Bhandh was organised in many parts of the country, including Delhi, Kerala, Assam, Karnataka, Odisha by innumerable Opposition parties.

The Gujarat Chief Minister tweeted that it has matched the central government's reduction, and that petrol and diesel are now cheaper by Rs 5 per litre.

Rupee Breaches 73/$ Mark For The First Time Ever
On Wednesday, the rupee declined sharply lower against the USA dollar to close at a record 73.34, amid soaring crude oil prices. At 9.50 am, the rupee stood at 73.65 to a greenback.

The Central government has been refusing to reduce the excise duty on fuel since May when the rates of petrol and diesel first surged and then again from mid-August.

Madhya Pradesh Chief Minister Shivraj Singh Chouhan too congratulated Prime Minister Narendra Modi and BJP president Amit Shah for reducing the prices of petrol and diesel by Rs 2.50. "So, a total of Rs 2.50 will be reduced on both diesel and petrol", said Jaitely.

Brent crude oil hit $86 per barrel on Wednesday, recording its highest level in 4 years. Petrol rates increased by Rs 0.15 per litre and diesel rates increased by Rs 0.20 per litre on Thursday.

Before the reduction, Mumbai had the highest Value-Added Tax of 39.12 per cent on petrol, while Telangana levies the highest Value-Added Tax of 26 per cent on diesel. Only a few weeks ago, multiple media reports, quoting anonymous senior government officials, indicating that the government had no plans of cutting excise duty.

"The impact will be about Rs 21,000 crore for the full fiscal". "But the fact is that we have to react to a situation.if without impacting the fiscal deficit I can give relief, and I had always said that our ability to give relief will not be at the cost of fiscal deficit", he said. "They are only interested about their party", she said.

"For oil security, we need strong OMCs".

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