Centre, BJP-ruled states cut fuel prices, Congress calls it panic reaction

Centre, BJP-ruled states cut fuel prices, Congress calls it panic reaction

Centre, BJP-ruled states cut fuel prices, Congress calls it panic reaction

In the announcement, Jaitley has also asked state governments to announce a matching reduction in duties and taxes levied by the state, which could see the prices decrease even further.

BJP president Amit Shah congratulated all the BJP-ruled states for slashing the fuel prices. In a tweet he said, "Madhya Pradesh has also reduced VAT [Value Added Tax] on fuel as a result of which the people will get a relief of Rs 5".

Petrol was sold at 83.85 rupees a litre, while diesel was sold at 75.25 a litre on October 3, according to state-run retailer Indian Oil Corp's website.

Maharashtra CM Devendra Fadnavis said: "Maharashtra government also chose 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".

Prime Minister Narendra Modi on Thursday held a meeting with his ministers over rising prices of petrol and diesel in the country. The centre now levies a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel. This will give huge relief to common citizens. After steadily raising taxes on fuel between 2014 and 2016, the Centre now levies an excise duty of Rs 19.48 per litre on petrol and Rs 15.33 on diesel.

Gujarat had announced a price cut to the same tune.

► However, Bihar Deputy CM Sushil Modi said that they haven't received any letter from Jaitley ji. "Then we will also step in".

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Rajasthan had last month cut its state Value-Added Tax by ₹2.5 per litre, while Karnataka and Andhra Pradesh both had cut their Value-Added Tax rates by ₹2 per litre.

Blaming the Centre for the frequent spurt in price of petroleum products, Isaac said it was the Centre that hiked the taxes on petroleum products.

At the same time, the Finance Minister has urged all states to contribute Rs 2.5 from their side, and make the overall reduction as Rs 5.

Himachal Pradesh CM Jai Ram Thakur said that the state government has also chose to give an additional relief of ₹2.5/litre on petrol and diesel to give a total benefit of ₹5/litre in the state.

The Centre held several discussions on reducing excise duty on petrol and diesel in the last two months, but the decision to implement the cut now was taken in view of the year-end assembly elections and realisation that global crude prices were unlikely to come down in the near future.

Price cut in states like Gujarat and Maharashtra would be Rs 5 after they matched the announcement with a similar reduction in local sales tax or VAT rates.

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