Petrol, Diesel Is Now Cheaper By Rs 5/Litre! Find Out How?
Govt. has taken an important decision regarding price of petrol and diesel.
In a surprise move, Govt. of India has announced that petrol and diesel prices will be now cheaper by Rs 2.5.
However, very soon, the prices can be reduced by Rs 5 as well!
Govt Of India: Petrol/Diesel Prices To Be Reduced by Rs 2.5
Finance Minister Arun Jaitley has announced that effective immediately, prices of petrol and diesel will be slashed by Rs 2.5, pan India.
While Rs 1.5 will be reduced in the excise duty, Oil Marketing companies will absorb Rs 1 reduced in price.
But.. Overall Price Can Be Reduced By Rs 5 Per Litre.
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.
As per the Finance Minister, the states can cut VAT by Rs 2.5, and hence, make the overall reduction of price by Rs 5 per litre.
This reduction in petrol prices was needed, as Maharashtra recently breached Rs 90 per litre mark, and speculations were rife that the price of petrol will soon touch Rs 100.
Since April this year, prices of petrol and diesel has witnessed a steep upswing, baffling consumers all over the country. Rising crude oil prices, and weakening of Rupee against the Dollar is seen as the major reason for this increase in price of petrol and diesel.
States Respond; Price Reduced By Rs 5!
Immediately after the announcement, and the declaration by the Finance Minister, three states have responded, and reduced the price of petrol and diesel by Rs 2.5, thereby making the overall reduction to Rs 5 per litre.
These three states are: Gujarat, Maharashtra and UP, where the state Govt. has listened to the Finance Minister’s advise, and taken a positive step.
Tripura too has decided to match the reduction by Rs 2.5 per liter. Hence, petrol and diesel prices in Tripura too has reduced by Rs 5 per liter.
All four states are BJP ruled.
Meanwhile, reports are coming in that Delhi, led by AAP will not cut VAT on petrol and diesel. This means that petrol will continue to be expensive in Delhi.
Just In: Kerala has ruled out any reduction in VAT for matching Centre on reducing petrol/diesel prices.
Immediately after the announcement that Oil Marketing companies will absorb Rs 1 per litre as their contribution to make petrol/diesel cheaper, share prices of Indian Oil, HPCL and BPCL tanked by upto 11% in the share market.
Here is the summary of share price fall of oil marketing companies:
Indian Oil Corp: Loss of 11.4%
Hindustan Petroleum: 13.5%
Bharat Petroleum: 12.4%
Reliance Industries: 6.9% (their largest fall since August 24th, 2015)
Interestingly, share market witnessed a major crash today, as more than 800 points were lost since morning. After the announcement that Oil Marketing companies will bear Re 1 loss per liter, their position weakened even further, thereby triggering a ripple effect.
We will keep this post updated, as more details come in.