Petrol, Diesel cheaper by Rs 5 from midnight

Posted October 05, 2018

Finance Minister Arun Jaitley on Thursday cut petrol and diesel prices by Rs 2.50 per litre with immediate effect, providing some relief from rising fuel prices.

Petrol in Mumbai will now be available at Rs 86.34 per litre while in Ahmedabad, it will be available for Rs 78.21 per litre.

Finance Minister Arun Jaitley has also announced that the government will ask the Oil Companies to reduce the Prices by another One Rupee.

The fuel prices had been going up every day for last few weeks, burning a hole in people's pockets. Soon, several other NDA-ruled states - Chhatisgarh, Tripura, Jharkhand, Madhya Pradesh, Uttar Pradesh, Haryana, Assam, Uttarakhand, Goa, Himachal Pradesh and Arunachal Pradesh - followed suit.

According to the Finance Minister, the move will have an impact of Rs 10,500 crore this fiscal but the government is confident of achieving the fiscal deficit target.

Brent oil on Wednesday crossed $86 per barrel, which is the highest in the last four years, and rising interest rates in the U.S. have a significant impact across global markets, said Jaitley.

India's government has introduced a fuel relief as prices at the pump rise inexorably, following soaring worldwide benchmarks, Indian media report, citing the official statement by Finance Minister Arun Jaitley.

Rates of subsidised domestic cooking gas, too, have breached the Rs 500-mark for the first time.

Global oil prices have risen to four-year highs above $85 a barrel on fears of a global supply crunch, prompting US President Donald Trump to repeatedly demand the Organization of Petroleum Exporting Countries to lower prices.

Rupee Thursday dropped to 73.77 against the dollar, resulting in expensive crude imports.

Finally, after an unhindered rally of fuel prices, the government has announced a tax-cut to compensate for the increase in crude prices. Banerjee claimed that fuel prices were reduced in the worldwide market and asked why these were increasing in the country.

Thank you Hon PM @narendramodi ji and Union Minister @arunjaitley ji for reducing ₹2.50/litre on both Diesel and Petrol. On top of this, states levy value-added tax (VAT).

Feedback from BJP-ruled states on anger among people over frequent increase in prices of petrol and diesel, coupled with the opposition raking up the issue, had become a matter of concern for the government, sources said.

"The government has cut down borrowing this year by Rs 70,000 crore".