Cut in petrol, diesel prices shows government's sensitiveness: Shah

Gujarat Maharashtra Cut Fuel Prices After Centre's Announcement Live

Finance Minister Arun Jaitley, who made the announcement, pegged the excise duty cut impact at Rs 10,500 crore.

He also asked the states to match the cut announced by the states to give further relief to the masses and Gujarat and Maharashtra immediately followed suit.

"I am also writing to the states to make corresponding cuts in Value-Added Tax of equivalent amount so that consumers get Rs 5 relief in retail prices", he said.

The minister also maintained that Thursday's decision did not represent a re-regulation of fuel prices. This will reduce the overall price by about Rs 5. Top sources said that the state government is also considering a reduction in the prices of diesel.

The share prices of oil marketing companies like Hindustan Petroleum Corporation Ltd plunged immediately, down by as much as 12% in initial trading after Jaitley's remarks.

The strong USA economy added with the mighty dollar has widened the current account deficit of India and it has also impacted significantly on the emerging markets across the globe. In Mumbai, petrol rates had breached Rs 90 per litre.

"By asking the oil marketing companies to absorb the price hike, the government is giving a signal that it can interfere at anytime in a deregulated market in the larger public interest", said Gagan Dixit, a senior analyst with Elara Capital.

Trump told Saudi King he wouldn’t last ‘2 weeks’ without United States support
The climb in oil prices comes even as Saudi Arabia reported, according to Reuters, that its oil production is near a record. Al-Falih also said that production would be "slightly higher" in November compared to October levels.

Musk tells Tesla employees to prove 'naysayers' wrong
However, it missed its weekly Model 3 production target and said it was facing a 40pc import tariff in China. The company handed over 83,500 vehicles in the third quarter, doubling its total in the prior three months.

Samantha Markle hoping for a ‘happy ending’ with Meghan after TV apology
She also appeared to hit out at negative comments about her father, Thomas Markle , 74 who is at the centre of the siblings' tensions.

The new fuel prices would be effective in the state from this midnight, an official spokesman said.

Following the Centre's appeal, several State governments including Tripura, Maharastra, Chhattisgarh, Jharkhand and Gujarat announced to provide give additional relief of Rs 2.50 per litre on petrol and diesel to give benefit of Rs 5 per litre to people in their respective States.

For state-owned fuel retailers absorbing Re 1 per litre price would mean about Rs 10,700 crore dent in their revenue on an annualised basis. State-run refiners will also cut the price they charge by 1 rupee per litre.

Diesel is being sold at Rs 75.45 per litre in New Delhi, Rs 79.79 per litre in Chennai and Rs 77.30 per litre in Kolkata.

India stopped controlling petrol prices in 2010 and diesel prices in 2014, linking them to global crude markets in a bid to ease pressure on government finances and improve the earnings of oil refiners.

Brent, the benchmark for more than half the world's oil, has touched United States dollars 86 per barrel mark, the highest in four years.

Related news:

Hot News

isis-killer-beheading-video-story-top Google confirms Pixel 3 preorders will start 9 October, hints at colours
Oct 05, 2018 - 01:48
The feature was first added to Pixel 2 and Pixel 2 XL , and allow users to launch Google Assistant just by squeezing the device. The Pixel 3 and the Pixel 3 XL are going to be launching this month during an event that will take place in New York City.

isis-killer-beheading-video-story-top Trump has sharp words for ABC's Vega, CNN's Collins
Oct 04, 2018 - 03:30
Kavanaugh has faced allegations of sexual misconduct by three women, Christine Blasey Ford , Deborah Ramirez and Julie Swetnick. But as she, and many others pointed out, a press conference means reporters get to ask whatever they want.

FBI may wrap up Kavanaugh investigation later today, source tells Fox News
Oct 04, 2018 - 01:56
Ford explained in detail what to expect, how polygraphs worked and helped McLean become familiar and less nervous about the exam. He and Collins could be key votes in confirming Kavanaugh in the Senate, which Republicans control by a slim 51-49 margin.

isis-killer-beheading-video-story-top Amazon introduces Fire TV Stick 4K with Alexa Voice Remote in India
Oct 04, 2018 - 01:52
Fire TV Stick 4K is available for pre-order on Amazon.com for $50 and will start shipping on October 31 in the U.S. and Canada. Indeed, when you visit the product page for the Fire TV Gen. 3 , it recommends you buy a new $49 Fire TV Stick 4K instead .

isis-killer-beheading-video-story-top USA ends treaty normalizing relations with Iran after ICJ ruling
Oct 04, 2018 - 01:43
The treaty was signed long before Iran's 1979 Islamic Revolution which ended friendly relations between the countries. A new series of sanctions is due to go into effect November 4 aimed at sharply curtailing Iranian oil exports.

isis-killer-beheading-video-story-top The Rockies are moving on after historic win at Wrigley Field
Oct 04, 2018 - 00:30
Terrance Gore tried to sell that he was hit by a pitch, but was sent back to the plate after a review confirmed the initial call. As Arenado applied the tag in the middle of the base path between second and third, Baez wrapped his arms around him.

isis-killer-beheading-video-story-top Donald Trump: 'Scary time for young men' in US
Oct 03, 2018 - 03:43
Jeff Flake of Arizona - also raised questions Tuesday about whether Kavanaugh has the right temperament to be on the high court. But he says anew that the Senate will vote on Kavanaugh this week.

isis-killer-beheading-video-story-top Jose Mourinho fires warning at Manchester United squad ahead of Valencia clash
Oct 03, 2018 - 03:25
Pushed further on the squad's attitude, Mourinho added: "I think that some care more than others", while refusing to name names. United won their opening game 3-0 away to Young Boys, while Juventus and Cristiano Ronaldo also kicked off with three points.

Mourinho is embarrassing Manchester United, says Scholes
Oct 03, 2018 - 02:26
United have twice before during Louis van Gaal's reign been late arriving for matches at West Ham United and Tottenham Hotspur. I am sat here actually surprised he survived after Saturday, the performance was that bad.

isis-killer-beheading-video-story-top U.S. says Chinese destroyer came dangerously close to United States ship
Oct 03, 2018 - 02:06
Gorman said on Tuesday that the Chinese destroyer approached within 41m of the Decatur's bow, forcing it to manoeuver. China has reclaimed 3,200 of acres of land in the features and built ports, runways and other military infrastructure.

isis-killer-beheading-video-story-top Surface Pro 6 announced: familiar external design, big internal upgrades
Oct 03, 2018 - 01:13
As per a WinFuture report, Microsoft will launch the Surface Pro 6 and Surface Laptop 2 with some specification bumps. It promises to offer all-day battery life, which apparently is 14.5 hours, but your mileage will obviously vary.

isis-killer-beheading-video-story-top Le'Veon Bell to report to Steelers during the bye week
Oct 02, 2018 - 03:28
With Bell so far forfeiting $3.4 million of potential earnings this year and the Steelers skidding, the dispute has gotten ugly. ESPN's Adam Schefter reports that Le'Veon Bell expected to report to the Pittsburgh Steelers during week seven.

isis-killer-beheading-video-story-top Elon Musk to give up role of Tesla chairman
Oct 02, 2018 - 03:20
Musk, a co-founder of Tesla , is the company's largest stockholder, owning approximately 22 per cent of its outstanding shares. Likewise, Tesla will pay another $20 million due to its failure to check whether Musk's announcements complied with the law.

isis-killer-beheading-video-story-top 'Black Mirror' May Be Planning A Choose-Your-Own-Adventure Episode
Oct 02, 2018 - 02:25
Netflix had earlier released the animated program " Puss in Book " where viewers could choose alternate endings of the same show. The hope is to "blend elements of video games with traditional television", and that could certainly appeal to many viewers.

isis-killer-beheading-video-story-top Toronto law firm hits Facebook with class action lawsuit after security breach
Oct 02, 2018 - 02:17
To deal with the issue, Facebook reset some logins, so 90 million people have been logged out and will have to log in again. Hackers used a vulnerability in the platform's code to steal other users" "access tokens' and log into their accounts.