Centre cuts fuel prices, so do some states - Fusion - WeRindia

Day by day, fuel prices are increasing. Despite the protests of opposition parties and the vehicle owners, the fuel prices are skyrocketing.

In Mumbai it crossed ₹90 which led to the criticism of public everywhere.

At last, the central government decided to curb the prices and announced a cut of ₹2.5 in the fuel prices yesterday.

A reduction of ₹1.50 in excise duty and ₹1 in OMCs will result in the slash of fuel prices for ₹2.5.

The central government also urged all state governments to cut the VAT of ₹2.5 stating that increasing crude oil prices help gaining their revenues, so there will no loss for them even though they reduce the VAT.

Followed by the announcement of central government, the NDA-ruled governments in 11 states announced a cut of ₹2.5 in the petrol prices.

As a result, the price of petrol was down by ₹5 in these states.

Thus, the relief will be in three parts, cut in excise duty, OMCs (oil marketing companies) and VAT.

However, nine states reduced the prices of both petrol and diesel, the Maharashtra government announced a cut on the petrol prices, and the decision on the cut of diesel prices will be taken.

Andhra Pradesh, Karnataka and Rajasthan already reduced VAT in order to give relief to consumers.

Arun Jaitley, the Finance Minister of India said the reduction in excise duty will have an effect of ₹10,500 crore on the central revenue.

The crude oil touched a four-year high of $86 per barrel and even the interest rates in the US have reached a seven-year high.

In this situation, the reduction in excise duty helps consumers, says Finance Minister. He asked all the state governments to follow it.

And the citizens can know the reality of the criticism of other political parties if they do not cut the VAT.

However, the Opposition alleged that it is an election gimmick as the Lok Sabha polls ahead.

Image credit: Image by Andrzej Rembowski from Pixabay (Free for commercial use)

Image Reference: https://pixabay.com/it/photos/carburante-benzina-gas-diesel-4148212/