Thursday, October 4, 2018
The Centre has decided to effect a cumulative cut of Rs.2.5 per litre on fuel prices with the government absorbing Rs.1.5 and the oil marketing companies Rs.1 said the Finance Minsiter Arun Jaitley.
He said he would be writing to all the States urging them to match the Rs.2.5 cut with an equivalent reduction in their respective VAT rates on fuel thus making the total benefit of Rs.5 per litre to consumers. This will come into effect from the midnight of October 4.
With this, the Centre levied Rs.19.48 per litre excise duty on petrol and Rs.15.33 per litre on diesel before the cut which will come down to Rs.17.98 a litre and Rs.13.83 a litre respectively once the duty reduction come into effect.