While the Centre received a fixed revenue from excise duty on oil, states imposed ad valorem Value-Added Tax in percentage terms which go upto as high as 31 per cent, the minister said.
The consumers will get a benefit of Rs. 2.50, said finance minister Arun Jaitley while announcing the decision.
With a similar increase, petrol is now priced at Rs 83.52 and Rs 84.89 per litre in Kolkata and Chennai, respectively.
Following the centre's path, Gujarat and Maharashtra also reduced fuel prices by 2.50 per litre.
While it may seem the Indian government certainly has room for slashing taxes further on fuels, the recent cut is estimated to cost the government ₹2.7 trillion.
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Swetnick claims that she and Kavanaugh attended multiple parties in which young women were drugged and gang-raped. Ford testified that Kavanaugh and a friend pulled her into a bedroom at a house party when they were teenagers.
It had resisted the call for a reduction in excise duty since May when retail rates first shot up and then again from mid-August when fuel prices started moving up. Talking about the economy, the Finance Minister said that nothing could be worse than 2013.
Petrol and Diesel price has tightened the pockets of the consumers due to the daily price hike. He said that while the Centre has cut excise duty on petrol and diesel by Rs 1.50 per litre, the Oil Marketing Companies (OMCs) will further reduce prices by Re 1 per litre.
The government said on Thursday it was cutting petrol and diesel by 2.50 rupees per litre to help Indians struggling to pay fuel prices that had climbed on the back of a rise in global crude prices and a weakening rupee. The effective reduction would be Rs 4.06 per litre. "Thus petrol & diesel wd be Rs. 5 cheaper in the State of Gujarat".
Nationalist Congress Party's Leader of Opposition in the Legislative Council Dhananjay Munde criticized the belated decision and reiterated that petrol-diesel must be brought under GST for providing genuine relief to the people.
According to Telangana Petroleum Dealers Association, the fuel prices would come down by Rs 3 as the Centre had announced a cut in excise duty. "So the impact will be Rs 10,500 crore in current fiscal which is only 0.05 per cent of fiscal deficit". According to analysts that amount will exert marginal pressure on the country's fiscal deficit, which is being closely watched by worldwide ratings agencies and the country's capital markets. "Therefore they would be in a position to absorb this", he said.
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