Government has announced a relief of Rs 2.50 on petrol and diesel to consumers at a time when the Brent crude has touched $86 per barrel and there is uncertainity in the international crude oil market.
Announcing the decision, Finance Minister Arun Jaitley said that the Centre will cut Rs 1.50 in excise duty on fuel while an additional Re 1 will be absorbed by the Oil Marketing Companies.
He has urged the state governments to cut the VAT on fuel by an equal amount. Jaitley said that the move will have an impact of Rs 10,500 crore this fiscal but the government is confident of achieving the fiscal deficit target.
Jaitley added that the situation in the international market is uncertain and that our macroeconomic fundamentals – especially on the inflation and fiscal front – are strong enough to bear any impact.
Government has decided to reduce the central excise duty levied on petrol and diesel by Rs 1.50 in light of the skyrocketing fuel prices to ease the burden on the customers. Addressing a press brief on Thursday, Finance Minister Arun Jaitley said that the oil marketing companies will cut their prices by Re 1, taking the effective price relief for consumers to Rs 2.50