Petrol price comes down to Rs 5 in most states after excise duty cut

WION Web Team New Delhi, Delhi, India Oct 05, 2018, 09.37 AM(IST)

Representative Image. Photograph:( Zee News Network )

A day after the centre decided to cut fuel prices by Rs 2.50, the prices of petrol and diesel in major cities of the country witnessed a decline on Friday.

Petrol in Delhi which was priced at Rs 84 per litre on Thursday was decreased to Rs 81.50 per litre today. While the price of diesel reduced from Rs 75.45 per litre to Rs 72.95.

Petrol prices witnessed similar downfall in several other cities including Mumbai, Kolkata and Chennai.

Petrol which was available for Rs 91.34 per litre on Thursday, is priced at Rs 86.97 per litre today.

In Chennai, the price of Petrol which was available for Rs 87.18 on Thursday was available for Rs 84.70 while in Kolkata it reduced to Rs 83.35 from Rs 85.65.

Diesel in Kolkata reduced to Rs 74.80 from Rs 79.57 per litre, while in Chennai it reduced to Rs 77.11 per litre.

Fuel prices were reduced on Thursday after the Finance minister stated that the excise duty would be cut by Rs 1.50 rupee to give relief to the consumers. 

The Finance Minister said that 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.

The government also asked the state government to cut through a reduction in VAT to further reduce the price.

BJP-ruled states Uttar Pradesh, Gujarat and Haryana and poll-bound states Madhya Pradesh and Chhattisgarh responded to the government's direction following which the price of petrol has been reduced by Rs 5 in various states.

"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," Arun Jaitley told media.

Jaitley stated the widening Current Account Deficit as the major concern adding that it is "directly linked to global oil prices."