(Image source from: Outlookindia.com)
Government Cuts Petrol And Diesel Prices By Rs 2.50:- The Central Government today announced a cut in the prices of Petrol and Diesel by Rs 2.50 per litre with immediate effect. Finance Minister Arun Jaitley during his recent press conference revealed that the Union Government decided to cut down the petrol and diesel prices by Rs 1.50. Then the Government asked all the oil marketing companies to give a cut in the price of petrol and diesel by Re 1 per litre. Jaitley even said that the Centre will be writing to all the state governments to reduce the prices in petrol and diesel by Rs 2.50 per litre further.
This can be done by cutting the sales tax or VAT in every state. Jatiley said that the impact of excise duty cut to the Centre will be Rs 10,500 crores. The country has been protesting against the huge rise in petrol and diesel prices and the Centre has been facing the heat. Taxes on petrol and diesel bring one of the biggest income for the government and they account for more than one third of the retail fuel prices.