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

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

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

Some states such as Gujarat, Chhattisgarh, Tripura, Uttar Pradesh, Assam and Maharashtra, ruled by Modi's BJP, cut their own taxes following the federal government's announcement.

In September, the chief minister had announced a Rs 2 cut on petrol and diesel prices while the country was seeing daily increase in prices.

"The government's aim is to give relief to the consumer by increasing their purchasing power without impacting the fiscal deficit", he said.

In New Delhi, petrol prices rose by 15 paise to Rs 84 a litre while diesel prices increased by 20 paise to Rs 75.45 per litre. As on October 4, petrol prices stood at Rs 91.34 per litre in Mumbai.

Shares of oil marketing companies fell after finance minister Arun Jaitley said that the government has asked the companies to absorb Re 1 cut on fuel prices.

However, fuel will cost Rs 5 per litre lesser with immediate in six states - Uttar Pradesh, Gujarat, Maharashtra, Chhattisgarh, Tripura and Assam - where state governments have further cut Value-Added Tax by Rs 2.50 per litre.

Madhya Pradesh also announced a cut of Rs 2.5 per litre in petrol and diesel prices. The total price cut in these states is now Rs 5 per litre.

The central government had incrementally taxed the fuels when the global crude prices had hit an all-time low to generate revenues for the state in order to rein in the fiscal deficit.

Jaitley said the move followed Brent crude oil touching four-year high of United States dollars 86 a barrel Wednesday and interest rates in USA reaching seven-year high.

The state will do so if the Centre bring the fuel prices down to the level when the Narendra Modi government assumed office in May 2014, Issac told the media here while reacting to Union Finance Minister Arun Jaitley's statement in this regard.

The price cut is likely to result in a loss of margin of 70-72 billion Indian rupees on auto fuel sales, according to K Ravichandran, senior vice president, corporate ratings, at ratings agency ICRA Ltd.

Central Government has finally chose to stop the arrest of increasing Fuel Prices.

"The states' revenue increases because of increased crude oil prices and hence it is easier for the states to absorb Rs 2.50", he said.

Punjab Chief Minister Captain Amarinder Singh called a meeting of officers of excise and taxation and finance department on Friday to assess the implications and the impact of the Centre's suggestion to states on reducing fuel prices.

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