The decision was announced by finance minister Arun Jaitley after he held a closed-door meeting with Prime Minister Narendra Modi and petroleum minister Dharmendra Pradhan. Jaitley also urged state governments to further reduce VAT and other state-level taxes to further drop the price.
So much for good governance? "The government's aim is to give relief to the consumer by increasing their purchasing power without impacting the fiscal deficit", he said.
Over two-thirds of 61 economists said in a Reuters poll the RBI would lift the repo rate at least once by the end of 2018, with over half stating that there would be a 25 basis points rise in October.
"Three major factors decide crude oil prices". States saw their Value-Added Tax revenue from petro goods rise from Rs 1,37,157 crore in 2014-15 to Rs 1,84,091 crore in 2017-18. If the Centre is serious, it should reduce the tax to what it was when it assumed office.
Elon Musk mocks United States agency just days after settling with it
Under terms of the settlement, Tesla and Musk will each pay a $20 million fine, and Musk must give up his role as chairman. But that doesn't mean Tesla's board can't order Musk to tone done his Twitter act in the best interests of the company.
► Gujarat CM Vijay Rupani said: "Finance Minister Sh @arunjaitley Ji has announced Rs.2.5 cuts in petrol & diesel prices, reciprocating positively to FM's announcement, the Govt Of Gujarat has also chose to reduce Rs.2.50 on both petrol & diesel". The centre levies a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel.
Brent oil on Wednesday crossed $86 per barrel, which is the highest in the last four years, and rising interest rates in the USA have a significant impact across global markets, said Jaitley. A 13 percent depreciation in the Indian rupee had only made fuel imports costlier.
Jaitley said the impact of the excise duty cut on the Centre's revenues would be about Rs 21,000 crore in a full year and Rs 10,500 crore in the remainder of the current financial year.
On OMCs absorbing Re 1, he said they would adjust it over present and future prices.