A year ago in October, when the oil prices were rising, the Centre cut excise duty by Rs 2.
Union Finance Minister Arun Jaitley on Saturday said he disagreed with the Supreme Court's judicial view on Section 377 that sexuality is a part of free speech. Whereas Maharashtra government has not done any additional reduction on petrol price and Jharkhand also not slashed down the price. The centre levies a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel.
"I am also writing to the states to make corresponding cuts in Value-Added Tax of equivalent amount so that consumers get Rs 5 relief in retail prices", he said. "The government has cut down borrowing this year by Rs 70,000 crore". Gujarat had announced a price cut to the same tune. After continuously being on an ascent for over three months, the fuel prices are likely to witness a dip with effect from Thursday midnight.
"In general, what's driving emerging market weakness is a stronger USA 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.
The reduction follows petrol and diesel prices soaring to new highs.
Indian stocks fell for a third straight session on Friday, dragged by shares of energy companies such as Reliance Industries Ltd and oil marketers, a day after the government announced a cut in fuel prices.
The government of India has finally pitched in to cut down the prices of fuel in India by cutting the excise on petrol and diesel.
This came after Jaitley asked states to further cut prices on their level by Rs 2.50 per litre so that consumers can get a relief amounting to Rs 5 per litre.
However, South Indian states such as Kerala, Karnataka and Andhra Pradesh say they can't cut their fuel taxes anytime soon. Diesel prices in Chennai increased by 22 paise to Rs 79.79 a litre and by 20 paise to Rs 77.30 per litre in Kolkata. "Thus petrol & diesel wd be Rs. 5 cheaper in the State of Gujarat".
The Minister expressed confidence about meeting the fiscal deficit target despite the excise duty cut, saying increased revenue collections would absorb the impact of the cuts.
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