Centre Slashes Fuel Prices By Rs 2.50, Seven States Follow: 10 Points

Centre Slashes Fuel Prices By Rs 2.50, Seven States Follow: 10 Points

Jaitley said the move will have an impact of Rs 10,500 crore on the revenues of central government this fiscal but the government is confident of achieving the fiscal deficit target.

Following the Centre's appeal, several State governments including Tripura, Maharastra, Chhattisgarh, Jharkhand and Gujarat announced to provide give additional relief of Rs 2.50 per litre on petrol and diesel to give benefit of Rs 5 per litre to people in their respective States. Acting on Arun Jaitley's advice, chief ministers of Maharashtra and Gujarat reduced state taxes on petrol and diesel.

Petrol, diesel prices across the country scaled new heights on Thursday, with diesel prices reaching Rs 80.10 per litre and petrol reaching Rs 91.34 per litre in Mumbai.

The reduction follows petrol and diesel prices soaring to new highs.

This rapid tax escalation more than doubled its excise collections from petro goods in the last four years - from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18.

Jaitley said it will be a test for those states whose leaders were only tweeting and indulging in lip sympathy. In Chennai, petrol and diesel rates increased to Rs 79.79 per litre and Rs 87.33 per litre respectively.

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"A large number of global factors, as I have repeatedly said, primarily the rising prices of Brent crude and also the domestic measures taken in the U.S. in terms of policy and raising of interest rates, has a significant impact across the world", Jaitley said.

The major announcement comes after Jaitley met Oil Minister Dharmendra Pradhan to look at options to mitigate the impact of hiking fuel prices on the economy.

"When the prices go up the Centre receives a fixed amount per litre, whereas the revenue of states go up".

This time, he expected the NDA-ruled states to follow suit and reduce the state's value added taxes.

Brent crude oil hit $86 per barrel on Wednesday, recording its highest level in 4 years.

In Delhi, where the fuel prices are the lowest among all metros and most state capitals, petrol is sold at Rs 84 a litre and diesel at Rs 75.45.

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