*Petrol, diesel cheaper by Rs 2.50 in BJP-ruled states
ITANAGAR, Oct 04: Arunachal Pradesh Govt has decided to reduce petrol and diesel prices by Rs 2.5 each to give a relief of Rs. 5 per litre to the consumers, according to an official statement.
This move, following the Govt of India decision, aims at easing the difficulties of common people and reducing the inflationary trend. The state Govt will bear the impact of the rate reduction by lowering the state VAT.
This decision, to be effective from 12 AM midnight on 04.10.18, action is taken in public interest despite loss in revenue generation.
Agency adds from New Delhi: The GoI on Thursday announced a Rs 2.50 per litre cut in petrol and diesel prices – comprising an excise duty reduction of Rs 1.50 per litre and a Re 1 reduction at the oil companies’ end.
Finance Minister Arun Jaitley, who made the announcement, pegged the excise duty cut impact at Rs 10,500 crore. He also asked state Govts to follow suit and cut taxes by a similar amount.
Maharashtra, Gujarat and the other BJP ruled states were quick to hear him. The total price cut in these states is now Rs 5 per litre. However, South Indian states such as Kerala, Karnataka and Andhra Pradesh say they can’t cut their fuel taxes anytime soon.
All the cuts will be effective from midnight, as clarified by finance secretary Dr. Hasmukh Adhia.
The reduction follows petrol and diesel prices soaring to new highs.
In Delhi, where the fuel prices are the lowest among all metros and most state capitals, petrol was being sold at Rs 84 per litre and diesel at Rs 75.45 on Thursday morning.
Jaitley said the move followed Brent crude oil touching four-year high of USD 86 a barrel Wednesday and interest rates in US reaching seven-year high.
Inflation in India, however, is still moderate at less than 4% and higher direct tax collections give comfort with regard to fiscal deficit, he said, adding domestic macroeconomic indicators are strong and stable, except for current account deficit (CAD).
Up & down of fuel prices
Following the hysterics, the opposition has urged for a nationwide strike to protest against the soaring oil prices. With the state of rupee already in a turmoil in the country, oil prices add yet another worry for our economy. But why are the prices going out of control?, Apeksha Duhan reported on 08.09.18 in MyIndia.
India became the 6th largest economy of the world this year. However, 2018 hasn’t been particularly well for the pocket of the country, as well as of the common man. While rupee hit a new all-time low, petrol and diesel shot up in the opposite direction, their prices touching the sky. The year opened with the petrol at Rs 69.97 in the capital, and has only seen a spiraling upward moment since then. Diesel has had a similar fate, with a price of Rs 59.76 per litre in January, 2018. Today, both stand at an increased rate of at least Rs 10.
At the same time, Rupee began the year with the Dollar exchange value at Rs 63.807, and today the exchange rate stands at a mocking Rs 71.80. The situation becomes all the more alarming because of the deeply complicated relationship between petrol,dDiesel prices, and the status of the exchange rate. Different analysts have different reasons to give, for the swamp that we find ourselves in.
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