Petrol, diesel prices reduced by Rs 5 in BJP owned states; nationwide cut of Rs 2.5

Central government on Thursday announced a cut of Rs 2.5 in petrol and diesel prices across the country and has asked all state governments to follow the suit.

Odisha and Punjab is yet to take a decision on VAT deduction, Opposition ruled states including West Bengal and Delhi demanded a deduction of Rs 10 per litre in fuel prices. (Image: AFP)

New Delhi: In a much-needed relief to the common citizen, the Central government on Thursday announced a cut of Rs 2.5 in petrol and diesel prices across the country and has asked all state governments to follow the suit by deducting the same amount in its value added tax (VAT) charges. As many as 12 Bharatiya Janata Party (BJP)-ruled states including Uttar Pradesh, Gujarat, Chhattisgarh, MP and others implemented the same and have reduced the fuel prices by Rs 5 per litre. Even Maharashtra announced a massive Rs 3.2 cut in petrol prices, however, decision on diesel price is still pending. The aforementioned deduction is fuel prices were implement from midnight. While announcing the cut in fuel prices, finance minister Arun Jaitley said that the government will bear the burden of Rs 1.50 per litre, while Oil Marketing Companies (OMCs) will absorb another Re 1 in cost to bring a total benefit of Rs 2.5 to the consumers. Announcing the same, Finance Secretary Hasmukh Adhia took to Twitter and said, “The excise cut on petrol diesel announced by FM today will become effective from midnight of today. We urge States also to announce their cut in VAT with effect from 12 midnight today, if possible, so that the consumers get full benefit of the reduction immediately,” From Friday, petrol will cost Rs 81.51 a litre in national capital while diesel prices have been reduced to Rs 72.95 per litre. While states such as Bihar, Odisha and Punjab is yet to take a decision on VAT deduction, Opposition ruled states including West Bengal and Delhi demanded a deduction of Rs 10 per litre in fuel prices. Delhi chief minister Arvind Kejriwal took to Twitter and criticised the Central government over its decision of Rs 2.5 deduction in fuel prices. “Modi government had hiked excise duty by Rs 10 and reduced it by only Rs 2.50 today. This is cheating. The Centre should reduce excise by Rs 10,” Kejriwal said in a tweet. However, indirectly replying to Opposition, Jaitley during the press conference conducted on Thursday said that it will be a test for those states whose leaders were only tweeting and indulging in lip sympathy. “What will they do now and last time also only BJP and NDA-led state governments reduced VAT. This time if other state governments do not do it then people will ask them.” After this major announcement, fuel prices in all major cities have dropped down. Petrol in Mumbai will now be available at Rs 86.34 per litre while in Ahmedabad, it will be available for Rs 78.21 per litre.