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Fuel Becomes Cheaper: Modi Government Slashes Price By Rs 2.50 Per Litre, Asks States To Do The Same
Swarajya Staff
Oct 04, 2018, 05:37 PM | Updated 05:37 PM IST
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The Union Government on Thursday (4 October) announced a cut of Rs 2.50 per litre on Petrol and Diesel with immediate effect, reports Times of India.
Finance Minister Arun Jaitley while speaking at a press conference said that the government would effect a Rs 1.50 cut on excise duty on petrol and diesel. Apart from that the government is also reported to have asked the oil marketing companies (OMC) to absorb a deduction of Re 1 on both petrol and diesel.
He also urged states to take a cut in sales tax or VAT on fuel. The excise duty cut will cost the centre Rs 10,500 crore, he added. Taxes on petrol and diesel is one of the biggest source of revenue for the government comprises of about one-third of the cost.
Soon after Jaitley announced the price cuts, Chief Minister of Maharashtra cut Rs 2.50 in fuel prices, Gujarat government also effected a similar cut.
Chief ministers Devendra Fadnavis and Vijay Rupani tweeted their thanks to PM Modi.
Thank you Hon PM @narendramodi ji and Union Minister @arunjaitley ji for reducing â¹2.50/litre on both Diesel and Petrol. This will give huge relief to common citizens.
— Devendra Fadnavis (@Dev_Fadnavis) October 4, 2018
Finance Minister Sh @arunjaitley Ji has announced Rs.2.5 cuts in petrol & diesel prices, reciprocating positively to FMâs announcement, the Govt Of Gujarat has also decided to reduce Rs.2.50 on both petrol & diesel. Thus petrol & diesel wd be Rs. 5 cheaper in the State of Gujarat
— Vijay Rupani (@vijayrupanibjp) October 4, 2018
Jaitley while announcing the price cuts also said that he would be writing to the state governments to cut the state sales tax or VAT to further bring down the prices by Rs 2.50.
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