The central government today has announced to cut the prices of petrol and diesel by Rs 1.50 and ask the oil marketing companies to further drop it to Rs 1 thus benefitting the public with Rs 2.50 fall in the oil prices.
Finance minister Arun Jaitley released a press conference where he announced the sudden fall in the fuel prices and blamed the continuous rise of oil prices due to the international markets.
The centre further asked the respective states to reduce the value-added tax by Rs 2.50 thus making it to total drop at Rs 5. However, followed by the centre’s order two states – Maharashtra and Gujarat have decreased the fuel prices immediately.
The cut in the excise duty of the fuel will impact the government with Rs 10,500 crore as predicted by Arun Jaitley.
In the press conference, Arun Jaitley said that India is stable on the economic front and except for Current Account Deficit (CAD), all the other factors are encouraging.