Published: Sun, October 07, 2018
Money | By Hannah Jacobs

Assam Govt slashes prices on petrol and diesel; reduces Value-Added Tax in state

Assam Govt slashes prices on petrol and diesel; reduces Value-Added Tax in state

Whereas in Mumbai, petrol was marked at Rs 86.97 per litre and diesel was priced Rs 77.45 per litre.

Petrol is now retailed at Rs 81.82 per litre in Delhi, Rs 87.29 per litre in Mumbai, Rs 83.66 in Kolkata and Rs 85.04 in Chennai. "After the cut in petrol and diesel prices, let's pray to have elections every month or perhaps every week", one tweet said.

Madhya Pradesh government has also made a decision to give an additional relief of ₹2.5/litre on Petrol and Diesel to give total benefit of ₹5/litre in the state, tweeted Madhya Pradesh CM Shivraj Singh Chouhan.

Recently, the BJP government announced a Rs 2.50 per litre reduction in prices of petrol and diesel.

Chhattisgarh, Assam and Tripura also reduced the fuel prices by Rs 2.50 per litre, while Andhra Pradesh and flood-hit Kerala refused the centre's request.

The shares of Indian oil marketing companies sank after the announcement, with Indian Oil Stocks down by 18.24 percent, HPCL stocks tumbled by 22 percent and BPCL stocks declined by 19 percent.

The consumers will get a benefit of Rs. 2.50, said finance minister Arun Jaitley while announcing the decision.

After lowering sales tax/VAT charged on petrol following Centre's decision, Maharashtra government on Friday also reduced the diesel price by Rs 1.56 per litre.

Even though the central government and some BJP-ruled state governments reduced the prices by Rs 5 collectively, the results are not positive for the four metro cities, out of which, three are ruled by non-BJP governments. But growing public anger over surging fuel prices has caught the attention of the government. 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. The move includes an excise duty cut of Rs 1.5 per litre by the Central government and oil marketing companies absorbing another Re 1 per litre.

Jaitley said the total impact of Rs 1.50 cut in excise duty is about Rs 21,000 crore for full year and Rs 10,500 crore the reminder of current fiscal.

Last month, Rajasthan, Karnataka and Andhra Pradesh had reduced Value-Added Tax to cushion consumers for a spate of price increases.

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