Assam Finance Minister Himanta Biswa Sarma, on Thursday announced a total cut of Rs. 5, on petrol and diesel in Assam thereby bringing down the price for petrol to Rs. 81.50 a litre and that of diesel to Rs. 73.91 a litre. Petrol prices in Bengaluru were at Rs 82.32, whereas rates for diesel were at Rs 73.61.
Petrol and diesel prices continued to move upwards today after a brief breather to consumers.
Mumbai: Petrol and diesel prices on Sunday has witnessed a fresh hike.
Since mid-August, the prices of petrol and diesel increased by Rs 6.86 per litre and Rs. 6.73 per litre, respectively. This happened due to the Rs 1.56 relief on diesel prices announced by the state government on Friday.
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After providing a relief of two days to the common man over rising fuel prices, the petrol and diesel prices again saw a hike of 18 paise and 29 paise respectively in Delhi. At the same time, the prices of crude oil in the global market was $108 per barrel but the prices of the crude oil dropped to $77 per barrel at the start of November and further reduced to $36 in March, 2016. In Mumbai and Chennai, Rs 2.65 and Rs 2.68 were reduced respectively, but in Kolkata it was just Rs 2.50.
Within an hour of the finance minister's press conference, the state governments of Gujarat and Maharashtra announced Value-Added Tax cuts of Rs 2.5 per litre for both petrol and diesel. For the remainder of current fiscal, it would be Rs 4,500 crore, with IOC's share being roughly half and the rest is split equally between HPCL and BPCL.
This rapid tax escalation more than doubled its excise collections from petro goods in the last four years - from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18.
In the press conference, Jaitley said that he expects to see a negative revenue impact of Rs 10,500 crore as a result of the tax cuts and said that he expected that the government would be able to absorb the impact without harming its fiscal deficit target of 3.3%.