Petrol prices cut by Rs 5 in Maharashtra

Marcus Newton
October 6, 2018

The new prices became applicable from Thursday midnight.

Other pump owners expressed apprehensions that with the reduction in Value-Added Tax on petrol in Maharashtra, diesel prices will gradually catch up with petrol if immediate relief is not provided. Overall, fuel prices had increased by at least 10% in the last month alone.

The government of India has finally pitched in to cut down the prices of fuel in India by cutting the excise on petrol and diesel.

While it may seem the Indian government certainly has room for slashing taxes further on fuels, the recent cut is estimated to cost the government ₹2.7 trillion.

In a significant decision which would give major relief to the people, the Petrol and Diesel prices in Jammu and Kashmir have been slashed by Rs 5 per litre.

Jaitley said he on Wednesday met Oil Minister Dharmendra Pradhan and inter-ministerial consultations continued on Thursday.

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Maharashtra CM Devendra Fadnavis said: "Maharashtra government also made a decision to give additional relief of Rs 2.50 per litre on petrol to give a total benefit of Rs 5 per litre in the state of Maharashtra".

"As far as the CAD is concerned, it is obviously linked to global oil prices in the Indian context".

Jaitley said it will be a test for those states whose leaders were only tweeting and indulging in lip sympathy. Other BJP-ruled states are expected to follow suit.

Briefing media after the meeting, Finance Minister Arun Jaitley had said the government has decided on "five steps" to contain CAD, which widened to 2.4 percent of the GDP in the first quarter of 2018-19. In response, the governments of Maharashtra and Gujarat have also announced a reduction in excise duties.

"By asking the oil marketing companies to absorb the price hike, the government is giving a signal that it can interfere at anytime in a deregulated market in the larger public interest", said Gagan Dixit, a senior analyst with Elara Capital.

Other reports by MaliBehiribAe

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