New Delhi: Good news for bikers and car holders. Union Finance Minister Arun Jaitley in a press conference has announced Rs 2.50 reduction on Petrol and Diesel prices on Thursday.
He said that, “This is perfectly good economics, we want consumers to spend money o]n other items also… to do it without impacting the fiscal deficit is surely good economics,” Jaitley announced after an inter-ministerial discussions with petroleum ministry.
The minister said the Centre would reduce the tax rate by Rs 1.5 per litre while oil marketing companies would absorb the rest Re 1 per litre.
The cut, which comes ahead of assembly elections in three states — Rajasthan, Madhya Pradesh, Chhattisgarh will cost the exchequer for the remaining half of this financial year was Rs 10,500.
With unrelenting increase in fuel prices, the government decided to effect a cut in the prices of petrol and diesel by Rs 2.50 per litre.
Finance Minsiter Arun Jaitley announced at a press conference that the cut will be effected through slashing of excise duty to the tune of Rs 1.50 per litre, while the oil marketing companies will absorb the impact to the tune of Re 1 per litre.