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

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

While Rs 1.5 will be reduced in the excise duty, Oil Marketing companies will absorb Rs 1 reduced in price.

In the announcement, Jaitley has also asked state governments to announce a matching reduction in duties and taxes levied by the state, which could see the prices decrease even further.

Indian stocks fell for a third straight session on Friday, dragged by shares of energy companies such as Reliance Industries Ltd and oil marketers, a day after the government announced a cut in fuel prices.

The Congress chief has been attacking the government over high petrol and diesel prices and his party has accused the ruling dispensation of earning Rs 13 lakh crore due to taxes imposed on petrol and diesel.

On Thursday, shortly after the Centre announced reduction in prices of petrol-diesel, Maharashtra and at least a dozen states followed suit by reducing various local taxes like VAT on petrol and diesel. Of the Rs 2.5 cut, the Centre will bear Rs 1.5 of the burden and oil marketing companies will take a hit of Re 1 per litre. PM Modi expressed concerns over rising fuel prices in the season of Rabi crops. Whereas in Mumbai, petrol was marked at Rs 86.97 per litre and diesel was priced Rs 77.45 per litre.

Devendra Kumar Pant, chief economist at India Ratings and Research, said the move could act as a "minor comforting factor" for the central bank during its monetary policy meeting scheduled on Friday, as a fuel price cut will ease retail inflation.

Brent oil on Wednesday crossed $86 per barrel, which is the highest in the last four years, and rising interest rates in the United States have a significant impact across global markets, said Jaitley.

Jaitley was still speaking as of last updating this report.

The Chandigarh administration has reduced the value added tax (VAT) on petrol and diesel, an official release said in Chandigarh. However, in Mumbai, the diesel have gone up by 7 paise only. "This time if other state governments do not do it then people will ask them", he said. Absorbing this Rs 10,500 crore in increased collection and maintaining fiscal deficit I am confident we will be able to do that.