The common man reeling under the skyrocketing fuel prices got a much-deserved relief after Finance Minister Arun Jaitley on Thursday announced that the centre has cut the price of fuel Rs 2.5 across the country. He further urged all state governments to do the same so that the cost of diesel and petrol is reduced by Rs 5 with a joint effort by the Union and state governments.
Here's the list of 15 states who have cut down the fuel price:
Within minutes of his big announcement, Maharashtra government announced that they would ply with the centre's request, and cut the prices of fuel by the same amount.
Gujarat Chief Minister Vijay Rupani took to Twitter and announced:
Goa Government will further reduce fuel prices by ₹ 2.50 in the state, tweeted Goa CM Manohar Parrikar.
After Central Govt reduced prices of petrol & diesel by Rs. 2.50 per litre, UP Govt also decided to give additional relief:
Petrol & Diesel prices in Jammu and Kashmir were also slashed by Rs 5 per litre as the State Gov announced cut of Rs 2.50 in the fuel prices commensurate with the price cut of Rs 2.50.
Govt of Assam also decided to reduce tax on petrol & diesel prices by Rs 2.50:
Calling it as a 'Centre's historic decision, Tripura government decided to give additional relief of Rs 2.5 on petrol and diesel prices.
Himachal Pradesh government decided to give an additional relief of ₹2.5/litre on petrol & diesel to give the total benefit of ₹5/litre in the state: Himachal Pradesh CM Jai Ram Thakur announced.
Madhya Pradesh CM Shivraj Singh Chouhan tweeted:
Jharkhand Government has decided to give an additional relief of ₹2.5/litre on diesel in the state: Raghubar Das, Jharkhand Chief Minister
The government of Chhattisgarh has decided to reduce Rs 2.5 on both petrol & diesel in the state. Thus petrol & diesel will be Rs 5 cheaper in Chhattisgarh.
Haryana state has decided to give additional relief of Rs 2.5 litres on petrol and diesel announced CM Manohar Lal Khattar:
Uttarakhand government decided to give an additional relief of ₹2.5/litre on petrol & diesel to give the total benefit of ₹5/litre in the state.
Bihar Government decided to give additional relief on petrol and diesel.
While addressing the media on Thursday, Finance Minister Arun Jaitley informed that the excise duty has been reduced by Rs 1.50 and oil companies will absorb Rs 1 in effect to reducing the price by Rs.2.50 on both diesel and petrol. Speaking after a meeting with Petroleum minister Dharmendra Pradhan, Jaitley said:
"During the inter-ministerial discussions, we have decided to give relief to the consumers. After the approval of PM Modi, the relief has been decided in three ways. One, the excise duty has been cut by Rs 1.5. Secondly, the OMC's will reduce the price of fuel by Rs 1. From the central government, we have immediately cut down the price by Rs 2.5 on both petrol and diesel. Simultaneously, I am writing to the state government today that they also do the same, which means the total cut on fuel price will be Rs 5."
Both the center and state will have to cut down the prices in equal amount. Stating that the excise duty on petrol and diesel differs from state to state, Jaitley added:
"Central revenue as you know is a fixed revenue. It doesn't matter if crude oil is $60 or $75, we only get revenue according to the central excise duty. The excise duty for the state governments varies from one state to another. Some states have 31% VAT, some have less. The average of all states is 29%. So when the price of crude oil increases, the revenue for centre remains the same, because of its a fixed amount. As for states, if the crude price increases, the price varies, and some get a lot of revenue."