Petrol, Diesel Is Now Cheaper By Rs 5/Litre! Find Out How?

Petrol, Diesel Is Now Cheaper By Rs 5/Litre! Find Out How?

This happened due to the Rs 1.56 relief on diesel prices announced by the state government on Friday. Hence, petrol and diesel prices in Tripura too has reduced by Rs 5 per liter.

The reduction follows petrol and diesel prices soaring to new highs. The central excise on petrol and diesel went up by 211 per cent and 443 per cent respectively in this same period.

Maharashtra's Chief Minister Devendra Fadnavis has just announced an additional relief of Rs 2.5/litre resulting in a total Rs 5/litre drop in petrol prices.

"Respected Modi ji, the common man is very distressed over skyrocketing prices of petrol and diesel".

Immediately after the announcement that Oil Marketing companies will absorb Rs 1 per litre as their contribution to make petrol/diesel cheaper, share prices of Indian Oil, HPCL and BPCL tanked by upto 11% in the share market.

Reacting to Union Finance Minister Arun Jaitley's suggestion asking states to match the Centre's decision with a similar reduction in sales tax or VAT, State Finance Minister TM Thomas Isaac said it would adversely affect the state's revenue. Several states, including Gujarat, Assam, Uttar Pradesh, Chattisgarh, Jammu and Kashmir, and other slashed prices by as much as Rs 2.5 on the same day, expanding the effective relief to customers to Rs 5. Chandigarh has reduced the fuel prices by Rs 1.50.

The decision was taken during a closed-door meeting between the Prime Minister Narendra Modi, Jaitley and petroleum minister Dharmendra Pradhan.

He also noted that the oil marketing companies are fully competent to deal with the decision and the government was not going back on fuel price deregulation.

"And reducing oil prices, if you say is good politics, so be it", said Mr Jaitley. But growing public anger over surging fuel prices has caught the attention of the government.

In a boost to oil companies, the Reserve Bank of India (RBI) on Wednesday eased the overseas borrowing norms by up to $10 billion. Rising crude oil prices, and weakening of Rupee against the Dollar is seen as the major reason for this increase in price of petrol and diesel. Delhi charges a Value-Added Tax of 27 per cent on petrol and 17.24 per cent on diesel.

States Respond; Price Reduced By Rs 5!

Any further revenue loss, however, could widen the fiscal deficit.

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