In Chandigarh, Fuel Prices Cut By 1.5 Per Litre

Fuel Prices Center Finally Responds To Common Man's Plight

Fuel Prices Center Finally Responds To Common Man's Plight

It is to be noted that the Maharashtra government has reduced the price of petrol only and not diesel. "The government has cut down borrowing this year by Rs 70,000 crore".

Additionally, the union minister was generous enough to urge the state governments to follow the Center's footsteps and cut down the rates of petrol and diesel.

The decision was taken during a closed-door meeting between the Prime Minister Narendra Modi, Jaitley and petroleum minister Dharmendra Pradhan. Congress chief spokesperson Randeep Surjewala said the government had evidently panicked at the prospect of losing the assembly polls.

Gujarat CM Vijay Rupani said: "Finance Minister Sh @arunjaitley Ji has announced Rs.2.5 cuts in petrol & diesel prices, reciprocating positively to FM's announcement, the Govt Of Gujarat has also chose to reduce Rs.2.50 on both petrol & diesel". After much chaos regarding the fuel rate, the government has made a decision to cut down the price of the fuel. 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.

Jaitley said it will be a test for those states whose leaders were only tweeting and indulging in lip sympathy.

Opposition-ruled States like Karnataka, Andhra Pradesh, West Bengal and Kerala had already reduced Value-Added Tax but Congress-ruled Punjab is yet to take a call.

"The government's move is positive as it will placate prices and inflation, said rating agency Care". BJP-ruled Gujarat, Tripura and Chhattisgarh governments have also announced a similar reduction in oil prices. In Mumbai, the prices of petrol and diesel rose to Rs 87.15 per litre and Rs 76.75 per litre respectively.

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. After you announced Rs 5/litre, implement it instead of giving just Rs 4.37/litre... Of this, IOC's share would be roughly half and the rest split equally between HPCL and BPCL.

Yet now that the higher oil prices have combined with a falling rupee after the latest quarterly economic growth figures turned out disappointing, with the deficit widening, India is facing a serious challenge in sustaining its growth while reducing the adverse impact of the latest oil market developments. But with a weakening rupee, it will likely have fewer options in the form of import-related tax cuts.

Nearly half of the fuel price is made up of taxes. The revenue department will cut excise duty by Rs 1.50 and oil marketing companies will absorb Re 1 per litre. "Thus petrol & diesel wd be Rs. 5 cheaper in the State of Gujarat". This means that petrol will continue to be expensive in Delhi. Jaitley expressed confidence in maintaining the fiscal deficit target for the current financial year despite the reductions.

"In general, what's driving emerging market weakness is a stronger United States economy ... there is a lack of clarity on the effectiveness of rate hikes as a currency defence", said Sunil Sharma, chief investment officer with Sanctum Wealth Management.