This could lead to a further drop in prices of goods.
The central government has cut excise duty on petrol and diesel by Rs 5 and Rs 10 per litre respectively.
The announcement comes after pressure and criticism over highest-ever levels of fuel prices
Contents
Impact
Apart from the direct benefits to the consumer, the move will help reduce costs through the supply chain, eg, inputs, logistics cost, etc.
This could lead to a further drop in prices of goods.
The Centre has also asked states to commensurately reduce the value-added tax (VAT) on petrol and diesel to provide citizens relief.
Price Cuts By Rs 7
Multiple BJP-led states have acceded to the request.
Uttarakhand, Karnataka, Assam, Tripura, Gujarat, and Manipur have reduced both petrol and diesel litre rates by Rs 7.
Double Digit Price Drops:
Petrol and diesel prices per litre have seen a total cut of over Rs 7 in the following states.
Haryana
The state has announced a major cut on fuel prices with both petrol and diesel becoming cheaper by Rs 12 per litre.
Goa
The state has slashed VAT on both petrol and diesel in the state by Rs 7.
With this, the price of diesel is reduced by Rs 17 per litre and petrol by Rs 12.
Uttar Pradesh
Prices of diesel and petrol in the state will be reduced by Rs 12 per litre each.
Sikkim
Hours after the Centre’s announcement, chief minister Prem Singh Tamang followed suit and announced a cut in taxes on petrol and diesel by Rs 7 per litre.
Petrol is now cheaper by Rs 12 per litre and diesel by Rs 17 in the state.
In Metros: Delhi
Petrol price has been cut by Rs 6.07 per litre and diesel price by Rs 11.75 on Thursday.
Petrol will cost Rs 103.97 per litre, down from Rs 110.04.
Diesel rates will reduce to Rs 86.67 per litre from Rs 98.42.
In Metros: Mumbai
Petrol price has been cut by Rs 5.87 and diesel by Rs 12.48.
A litre of petrol now costs Rs 109.98, and a litre of diesel is now Rs 94.14.
In Metros: Kolkata
The price of diesel has been lowered by Rs 5.82 and that of diesel by Rs 11.77.
A litre of petrol and diesel now cost Rs 104.67 and Rs 89.79 respectively.
In Metros: Chennai
Petrol price has been cut by Rs 5.26 per litre and diesel by Rs 11.16.
A litre of petrol and diesel now cost Rs 101.40 and Rs 91.43 respectively.
To be noted is that the total incidence of price reduction is higher since states charge VAT on the excise duty levied by the Centre on top of the base price.
The VAT rates differ from state to state and consequently so do the rates of fuel.
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