Centre cuts fuel prices by Rs. 2.5

Jaitley asks States to match this with reduction in VAT rates for overall Rs. 5 relief
The Centre has decided to effect a cumulative cut of Rs. 2.5 per litre on fuel prices, with the Centre absorbing Rs. 1.5 of this and the oil marketing companies Rs. 1, Finance Minister Arun Jaitley announced on Thursday. Further, Mr. Jaitley said he would be writing to all the States, urging them to match the Rs. 2.5 cut with an equivalent reduction in their respective VAT rates on fuel, thus making the total benefit to consumers Rs. 5 per litre. All rate cuts will come into effect from the midnight of October 4. Mr. Jaitley said the decision was taken after several inter-Ministerial discussions, especially with the Department of Revenue and the Ministry of Petroleum and Natural Gas. The Centre levied a Rs. 19.48 per litre excise duty on petrol and Rs. 15.33 per litre duty on diesel before the cut, which would reduce to Rs. 17.98 per litre and Rs. 13.83 per litre respectively, once the duty reduction comes into effect. Congress leader P. Chidambaram termed the move a mere tokenism.
Source :  https://www.thehindu.com/todays-paper/centre-cuts-fuel-price-by-rs-25/article25128032.ece

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