The minister stated that an after intermagisterial discussions and meeting with officials of the revenue department, it has been decided that excise duty will be cut by Rs 1.50.
Union Finance Minister Arun Jaitley on Thursday briefed the media over looming concerns of relentlessly tumbling rupee and the unabated rise in fuel prices.
The minister stated that after intermagisterial discussions and meeting with the revenue department officials, it has been decided that the excise duty will be cut by Rs 1.50 rupee to give relief to the consumers.
Excise duty to be reduced by Rs.1.50 & OMCs will absorb 1 rupee. So, a total of Rs.2.50 will be reduced on both diesel and petrol: Finance Minister Arun Jaitley pic.twitter.com/sV4eZwmKEw
According to the Finance Minister, while the excise duty has been cut by Rs 1.50, various oil marketing companies will also absorb Rs 1 giving a cumulative relief of Rs 2.50 on fuel prices to the consumers.
We are writing to the state govts that as the central govt is cutting Rs 2.50 on both petrol & diesel, they do the same: FM Arun Jaitley pic.twitter.com/7QQ6TFrsnJ
"We have decided to cut the excise duty through the revenue department and the oil marketing companies. I would urge state governments to also absorb similar amount to provide relief to the consumer," Jaitley told media.
Jaitley stated the widening Current Account Deficit as the major concern adding that it is "directly linked to global oil prices."
The Finance Minister opened his address noting that the world crude prices this year have witnessed an all-time high. He added that Prime Minister Narendra Modi has been concerned about the escalating fuel prices in the country.
Several macroeconomic data is indicating stable measures. The first quarterly results have shown an 8.2% growth. Inflation is still moderate less than 4%: Finance Minister Arun Jaitley pic.twitter.com/Dk5yLDfggX
"Rs 10,500 Crore will be the impact of excise duty cut this year," he noted adding that the overall health of the economy looks healthy and stable.
"Several macroeconomic data is indicating stable measures. The first quarterly results have shown an 8.2% growth. Inflation is still moderate less than 4%," the minister said.
Jaitley also talked about the series of measures that were recently taken by the Central government to check the widening CAD and stem tumbling Indian currency.
"We had taken import restraining steps which had nearly 15 billion dollar impact. Money raised from masala bonds was exempted from tax," Jaitley shared.
The government's fuel-price cut move comes after petrol in Mumbai on Thursday reached Rs 91.34 per litre, while diesel rose to Rs 80.10 per litre. In Delhi, prices of petrol and diesel were hiked by 0.15 paise and 0.20 paise, respectively at Rs 84 per litre and Rs 75.45 per litre, respectively.
Indian stock markets today witnessed a tumult with the BSE benchmark Sensex cracking over 850 points in early session as the rupee hit another low amid weak global cues and fears of widening current account deficit.