At a time when there is uncertanity in the international crude oil market and brent crude has hit a price of $86 per barrel, government of India in a bid to provide relief to consumers has cut excise duty on both petrol and diesel by Rs. 1.50. Additionally, oil marketing companies (OMCs) will bear the remaining burden of Rs. 1.
Also, state governments have been asked to reduce VAT on fuel by the same amount. States after the crude oil price surged past $80 per barrel mark have already begun to make profit of more than Rs. 7 per litre. Furthermore, finance minister Jaitley reiterated that the move will not pose a threat to the fiscal deficit target and government is rather sure of achieving the same.
Until now, these states have taken a decision to cut fuel prices by Rs. 2.50, so in the following states diesel and petrol will be cheaper by Rs. 5.
• Arunachal Pradesh
• Himachal Pradesh
• Jammu and Kashmir
• Madhya Pradesh
All BJP-ruled states have decided to cut VAT by Rs.2.50 per litre on both petrol and diesel said BJP President Amit Shah.
The state of Karnataka for now has ruled out a price cut on fuel. We had already cut the fuel price by Rs 2 last month," Karnataka CM HD Kumaraswamy said.