Government Announces Relief On Fuel Prices By Reducing Excise Duty

Arun Jaitley,Fuel price hike,Finance minister

Soon after the Central government announced a cut of Rs 2.50 per litre on diesel and petrol today (October 4), all the Bharatiya Janata Party (BJP)-ruled states followed suit by slashing the fuel prices by another Rs 2.50 per litre. 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. We welcome this decision and thank Prime Minister Narendra Modi on behalf of the people and BJP workers.

Central Government has finally chose to stop the arrest of increasing Fuel Prices.

BJP president Amit Shah congratulated all the BJP-ruled states for slashing the fuel prices.

The cut, which comes ahead of assembly elections in five states - Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana and Mizoram, will cost the exchequer Rs 10,500 for the remaining half of this financial year. "Our OMCs will also absorb 1 rupee, resulting in an overall reduction of Rs 2.50 in prices of both petrol and diesel". "Thus petrol & diesel wd be Rs 5 cheaper in the State of Gujarat", Gujarat CM tweeted. "Then we will also step in", Mr Issac said.

By lowering duties, the Narendra Modi government is borrowing a page from the rulebook of past governments that have lowered levies whenever global oil prices shot up.

The Minister expressed confidence about meeting the fiscal deficit target despite the excise duty cut, saying increased revenue collections would absorb the impact of the cuts.

"Maharashtra Government also made a decision to give additional relief of Rs 2.5/litre on Petrol to give total benefit of Rs 5/litre in the State of Maharashtra", Fadnavis tweeted.

While addressing a press conference, BJP spokesperson Sambit Patra too expressed the hope that people will get a total relief of Rs 5 at the earliest as the Centre has asked states to effect an equal amount of tax cut in the oil prices.

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

The new fuel prices would be effective in the state from this midnight, an official spokesman said.

"Facing public ire and imminent defeat in the five election going states, Modi Government attempted to apply "band-aid" on the thousand wounds inflicted by it by massive profiteering in the prices of petrol, diesel, kerosene oil, cooking gas, CNG, PNG and natural gas". Kerala was one of the first states to cut excise duty.

Brent, the benchmark for more than half the world's oil, has touched United States dollars 86 per barrel mark, the highest in four years.

The states have reduced the sales tax and VAT charged on diesel and petrol.

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