Fuel Prices: Center Finally Responds To Common Man’s Plight
- Author: Eleanor Harrison Oct 05, 2018,
Oct 05, 2018, 2:07
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.
Hailing the government's decision to cut petrol and diesel prices by Rs 2.50 per litre, BJP President Amit Shah on Thursday said all the party-ruled states will give additional relief of Rs. 2.50 per litre by reducing Value-Added Tax.
Kerala Finance Minister Thomas Isaac however, said his government would not cut fuel prices, News18 reported.
In a press briefing, Jaitley said that the Centre will cut Rs 1.50 in excise duty on fuel while an additional Re 1 will be absorbed by the Oil Marketing Companies (OMCs).
"Ever since the Modi government assumed office, it has raised excise duty on diesel by Rs 14 and petrol by Rs 9 per litre".
Following the centre's path, Gujarat and Maharashtra also reduced fuel prices by 2.50 per litre.
Asked by a reporter about the economic implications of the move, Jaitley said the decision was "good economics" as it won't impact the fiscal deficit and will allow consumers to boost spending on other goods.
The RBI said that the state-owned oil companies can raise external commercial borrowings (ECBs) for working capital with minimum average maturity of 3-5 years and they don't have to mandatorily hedge all ECBs. In Kolkata and Chennai, petrol prices climbed by 15 paise to Rs 85.80 and Rs 87.33 per litre, respectively.
Brent crude oil hit $86 per barrel on Wednesday, recording its highest level in 4 years. Fuel prices are not uniform across the country due to variable state taxes.
Rupee Thursday dropped to 73.77 against the dollar, resulting in expensive crude imports.
Diesel is being sold at Rs 75.45 per litre in New Delhi, Rs 79.79 per litre in Chennai and Rs 77.30 per litre in Kolkata. Absorbing this Rs 10,500 crore in increased collection and maintaining fiscal deficit I am confident we will be able to do that. "This decision shows the sensitivity towards the country and people of the Narendra Modi-led central government".