LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Modi govt bites bullet, cuts excise duty; petrol, diesel prices cheaper by Rs 2.50

Making this announcement in a press conference, Finance Minister Arun Jaitley said, "We are writing to the state government that as the central govt is cutting Rs 2.50 on both petrol & diesel, they do the same.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Modi govt bites bullet, cuts excise duty; petrol, diesel prices cheaper by Rs 2.50
A total of Rs 2.50 will be reduced on both diesel and petrol following the government decision. Image source: Reuters
Written By: ZeeBiz WebTeam
Updated: Thu, Oct 04, 2018
04:28 pm
New Delhi, ZeeBiz WebDesk
RELATED NEWS
Petrol and diesel prices today: Fuel rates fall further, check rates in Delhi, Mumbai, Kolkata and Chennai Petrol and diesel prices today: Fuel rates fall further, check rates in Delhi, Mumbai, Kolkata and Chennai
Lok Sabha Elections 2019: Petrol, diesel price remain stable despite 5% rise in crude - This OMC is Morgan Stanley’s top pick Lok Sabha Elections 2019: Petrol, diesel price remain stable despite 5% rise in crude - This OMC is Morgan Stanley’s top pick
Petrol, diesel prices: General elections 2019 may have forced oil companies to bear losses Petrol, diesel prices: General elections 2019 may have forced oil companies to bear losses
Petrol, diesel prices to decline further: Petroleum Minister Dharmendra Pradhan Petrol, diesel prices to decline further: Petroleum Minister Dharmendra Pradhan
Petrol prices at lowest level in 2018 at Rs 69.74 today, diesel also becomes cheaper Petrol prices at lowest level in 2018 at Rs 69.74 today, diesel also becomes cheaper

Common man today gets relief from rising fuel prices, as the government decided to cut excise duty by Rs 1.50 and OMCs will absorb Rs 1, therefore, a total of Rs 2.50 will be reduced on both diesel and petrol. Making this announcement in a press conference, Finance Minister Arun Jaitley said, "We are writing to the state government that as the central govt is cutting Rs 2.50 on both petrol & diesel, they do the same.

"Several macroeconomic data is indicating stable measures. The first quarterly results have shown an 8.2% growth. Inflation is still moderate less than 4%," said Jaitley, adding "Rs 10,500 crore will be the impact of excise duty cut this year."

The Finance Minister said the move followed Brent crude oil touching four-year high of USD 86 a barrel yesterday and interest rates in US reaching seven-year high.

Further, he said that inflation in India is still moderate at less than 4 pe cent and higher direct tax collections give comfort with regard to fiscal deficit, adding domestic macroeconomic indicators are strong and stable, except for current account deficit.

4 October 2018 | #ZBizHeadlines: शाम 4 बजे की बड़ी ख़बरें pic.twitter.com/6rr3WCfQkf

— Zee Business (@ZeeBusiness) October 4, 2018

Earlier in the day, Finance Minister Arun Jaitley met Oil Minister Dharmendra Pradhan to look at options to mitigate its impact on the economy, said a PTI report citing sources aware of the discussion.

The two ministers had reportedly met last evening amid concerns of high fuel prices adding to farmers' distress, particularly in the upcoming Rabi crops season.

Notably, diesel is the most used fuel in the farm sector, as tractors tilling the soil to irrigation pump sets - all use diesel, and a spike in its prices is bound to add to the cost cost of farming.

The two ministers are believed to have discussed options to mitigate the impact of rising international oil prices and rupee dipping to new lows.

Watch this ANI video

#WATCH Finance Minister Arun Jaitley briefs the media in Delhi https://t.co/AYU7yA9njp

— ANI (@ANI) October 4, 2018

Petrol prices were Thursday hiked by 15 paise a litre and diesel by 20 paise, according to price notification of state-owned oil firms. 

The hike pushed petrol price in Delhi to an all-time high of Rs 84 per litre and diesel to Rs 75.45. Since mid-August, petrol price has risen by Rs 6.86 a litre and diesel by Rs 6.73 - the most in any six-week duration after the daily price revision was introduced in mid-June last year.

Earlier, states like Rajasthan, Andhra Pradesh and Karnataka reduced VAT on petrol diesel to give some comfort to consumers.

Almost half of the fuel price is made up of taxes. The centre levies a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel, and the states too levy value added tax (VAT). 

Between November 2014 and January 2016, the central government had raised excise duty on petrol by Rs 11.77 a litre and that on diesel by Rs 13.47 a litre in nine installments to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.

In last four years, this government step reportedly led to its excise collections from petro goods more than doubling - from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18. States also witnessed their VAT revenue from petro goods rise from Rs 1,37,157 crore in 2014-15 to Rs 1,84,091 crore in 2017-18. 

 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
India petrol priceDiesel priceFinance Minister Arun Jaitley
RELATED NEWS
Petrol and diesel prices today: Fuel rates fall further, check rates in Delhi, Mumbai, Kolkata and Chennai Petrol and diesel prices today: Fuel rates fall further, check rates in Delhi, Mumbai, Kolkata and Chennai
Lok Sabha Elections 2019: Petrol, diesel price remain stable despite 5% rise in crude - This OMC is Morgan Stanley’s top pick Lok Sabha Elections 2019: Petrol, diesel price remain stable despite 5% rise in crude - This OMC is Morgan Stanley’s top pick
Petrol, diesel prices: General elections 2019 may have forced oil companies to bear losses Petrol, diesel prices: General elections 2019 may have forced oil companies to bear losses
Petrol, diesel prices to decline further: Petroleum Minister Dharmendra Pradhan Petrol, diesel prices to decline further: Petroleum Minister Dharmendra Pradhan
Petrol prices at lowest level in 2018 at Rs 69.74 today, diesel also becomes cheaper Petrol prices at lowest level in 2018 at Rs 69.74 today, diesel also becomes cheaper

LATEST NEWS

JEE Main Result 2021 toppers list: 100 Percentile bagged by 6 candidates says NTA | Download scorecard from jeemain.nta.nic.in, nta.ac.in - Meet Saket Jha, Pravar Kataria, Ranjim Prabal Das, Guramrit Singh, Siddhant Mukherjee, Ananth Krishna Kadambi

Trading in Rakesh Jhunjhunwala Stocks II Technical’s decoded by Bonanza Portfolio

Easy Trip Planners IPO open for subscription, Anand Rathi says buy

Yes Bank Share price: Target price Rs 14, Anand Rathi maintains Sell rating | Earning, valuation and key risks

More than 50% account holders under PMJDY women: FinMin

OnePlus 9 series global launch on March 23; Packs Hasselblad cameras and more | Check all details here

Easy Trip Planners IPO: Motilal Oswal recommends Subscribe to the IPO

Nawazuddin Siddiqui to star in B. Praak's new music video

MTAR IPO: Know allotment finalisation status, listing date and how to check subscription of shares

25 per cent DA for central government employs from April? What does this 7th Pay Commission benefit mean, how it helps pensioners? EXPLAINED

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved