The administration has made an announcement about a respite of Rs 2.50 on petrol and diesel at a phase when the Brent crude hit $86 per barrel and there is improbability in the global crude oil zone.
While making a declaration of the verdict, Finance Minister Arun Jaitley stated that the Centre administration will slash Rs 1.50 in excise duty on petrol, diesel whilst an added Re 1 will get assimilated by the Oil Marketing firms.
Besides, Arun Jaitley also urged the state administrations to slash the VAT on fuel by an equivalent sum.
Jaitley stated that the fiscal deficit is under no risk from the decision and the administration is assured of attaining the target. States had already commenced making a profit of over Rs 7 per liter when fuel rates hit $80 per barrel.
Thus far, the following states have decided to slash fuel rates by Rs 2.50. The rates of fuel will get reduced by Rs 5 in these states:
Karnataka has winnowed out the price cut for the time being. Karnataka CM HD Kumaraswamy stated, “We had already cut the fuel price by Rs 2 last month.”
BJP President Amit Shah stated that all the BJP- dominated states have also made up their minds to decrease value-added tax by Rs. 2.50 per liter on petrol and diesel rates.
“The central government should slash fuel prices by Rs 10 at least. This government at the Centre is not bothered about the well-being of the masses,” Trinamool Congress supremo Minister Mamata Banerjee told reporters.
“They are only interested in their party,” the TMC chief added.
The response from CM came after the Centre administration had declared to a Rs 2.50 per liter decline in petrol and diesel rates and asked states to follow suit yesterday.
Addressing the media, Mr. Jaitley on Thursday declared cutting the excise duty by Rs 1.50 a liter and asked oil firms to offer another Rs 1 respite to the public.