Petrol now cheaper by Rs 3 in Noida as compared to Delhi

Gujarat Maharashtra Cut Fuel Prices After Centre's Announcement Live

The central government on Thursday reduced the prices of petrol and diesel by Rs 2.50 per litre.

Immediately after the announcement, and the declaration by the Finance Minister, three states have responded, and reduced the price of petrol and diesel by Rs 2.5, thereby making the overall reduction to Rs 5 per litre.

The state governments in nearly all BJP-ruled states including Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Jharkhand, Assam, Haryana, Himachal Pradesh, Uttar Pradesh, and Tripura today reduced the prices of petrol and diesel by Rs 2.5 soon after the Finance Minister Arun Jaitley announced a similar cut in fuel prices. Notably, central and state taxes and levies amount to more than the cost it takes to manufacture motor fuel.

Since April this year, prices of petrol and diesel has witnessed a steep upswing, baffling consumers all over the country.

Since mid-August, the petrol price has risen by Rs 6.86 a litre and diesel by Rs 6.73 - the most in any six-week duration after the daily price revision was introduced in mid-June a year ago. "Then we will step in", he said in Thiruvananthapuram while reacting to union finance minister Arun Jaitley's suggestion to states to reduce value added tax share.

Chhattisgarh, Assam and Tripura also reduced the fuel prices by Rs 2.50 per litre, while Andhra Pradesh and flood-hit Kerala refused the centre's request.

Gujarat had announced a price cut to the same tune.

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Following this, the Gujarat and Maharashtra Governments announced additional relief of Rs2.5/litre Petrol/Diesel.

Karnataka and Kerala have said that they will not be cutting state-imposed taxes on petrol and diesel.

The Finance Minister said, the prices of crude oil and domestic developments in the U.S. have impacted the economies across the world.

The Himachal Pradesh government has chose to reduce prices of petrol and diesel by Rs 2.50 per litre, Chief Minister Jai Ram Thakur said.

Read here: NDA-ruled states cut fuel rates by further Rs 2.50 per litreThe opposition parties however were not impressed. However, the state did not reduce diesel rates.

With global crude prices expected to go up, resulting in increase in domestic fuel prices, the government felt the urgency to cut excise duty apart from asking oil marketing companies to reduce the price.

Maharashtra charges the highest sales tax and VAT on petrol at 39.12 per cent. But growing public anger over surging fuel prices has caught the attention of the government.

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