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Petrol, diesel price cut: States follows Centre’s footsteps, reduce taxes on fuel

Fuel prices on the boil again, diesel breaches Rs 80 in Mumbai

"Today, after several inter-ministerial discussions, especially with the Department of Revenue and the Ministry of Petroleum and Natural Gas, it has been made a decision to give relief to consumers with an excise duty cut of ₹1.5 a litre, and the OMCs will factor in a ₹1 cut in their pricing formula".

Following Fin Minister announcement of cut of Rs 2.50 per litre in petrol & diesel prices, glad to share that Assam Govt has also chose to reduce Rs 2.50 on both petrol & diesel per litre, making it Rs 5 less than prevailing rates.

Thirteen of the 21 Bharatiya Janata Party ruled states as well as Jammu and Kashmir, which is presently under governor's rule, have heeded Jaitley's call, while none of the opposition-ruled states have followed suit.

The price cut would be effective from midnight tonight.

The Congress, however, hit out at the Narendra Modi government over what it described as a "meagre" reduction in excise duty on petrol and diesel.

The government of India has finally pitched in to cut down the prices of fuel in India by cutting the excise on petrol and diesel.

Jaitley said the move followed Brent crude oil touching a four-year high of $86 a barrel on Wednesday and interest rates in USA reaching a seven-year high.

The strong US economy added with the mighty dollar has widened the current account deficit of India and it has also impacted significantly on the emerging markets across the globe. As on October 4, petrol prices stood at Rs 91.34 per litre in Mumbai.

Nearly half of the fuel price is made up of taxes.

Excise duty to be reduced by Rs.1.50 & OMCs will absorb 1 rupee. The revenue department will cut excise duty by Rs 1.50 and oil marketing companies will absorb Re 1 per litre. In Kolkata and Chennai, petrol prices climbed by 15 paise to Rs 85.80 and Rs 87.33 per litre, respectively. Petrol rates increased by Rs 0.15 per litre and diesel rates increased by Rs 0.20 per litre on Thursday.

"The Brent oil since yesterday has crossed 86$/bbl which is the highest in the last four years".

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.