New Delhi, Oct 4 (IENews) Centre reduces petrol and diesel prices by Rs 2.50 per litre across the country with immediate effect from midnight.
Union Finance Arun Jaitely speaking to media, confirmed, “The government has cut the excise duty of Rs 1.5 on petrol and diesel, while oil marketing companies would bear the cost Rs 1 a litre.”
Jaitley also said he would write to the state governments to reduce the value added tax on petroleum products by Rs 2.50 as well so that people receive a benefit of Rs 5 a litre on fuel.
“Fuel prices can be reduced by Rs 5 a litre if states cooperate. If crude price increases to 80 dollars from 65 dollars, the states get benefit of 29 per cent on the added value. It increases their revenue share while the revenue of the Centre remains stagnant. So they can reduce VAT from their increased revenue,” he added.