Finance Minister Arun Jaitley today announced a cut of Rs 1.50 in excise duty for petrol and diesel. Jaitley said that the oil companies would further cut the fuel rates by Re 1, which means that petrol and diesel are set to get cheaper by Rs 2.50. The new rates will be applicable from midnight.
Addressing a press conference in New Delhi, Arun Jaitley appealed state governments to follow suit and reduce VAT on petroleum products. He said if states decrease VAT by Rs 2.50, the fuel rates could go down by at least Rs 5. Soon after, FM Jaitley’s appeal Gujarat and Maharashtra announced to decrease VAT on petrol, diesel by Rs 2.50.
Diesel, which is being sold at record high prices, is the most used fuel in the farm sector. Tractors tilling the soil to irrigation pump sets – all use diesels, and a spike in its prices is bound to add to the cost of farming.
Petrol prices were hiked by 15 paise a litre and diesel by 20 paise, according to price notification of state-owned oil firms.The hike pushed petrol price in Delhi to an all-time high of Rs 84 per litre and diesel to Rs 75.45.