Modi govt slashes Petrol and Diesel prices by Rs. 2.50, these states follow suit

Several states on Thursday slashed fuel prices after the Narendra Modi-led Union Government announced a Rs 2.50 a litre cut in petrol and diesel prices.

While the Centre cut excise duty on petrol and diesel by Rs 1.50 per litre and asked oil firms to absorb Re 1 a litre of prices, BJP-ruled states including Gujarat, Maharashtra, Uttar Pradesh, Madhya Pradesh, Chattisgarh, Jharkhand, Assam and Tripura announced a cut in VAT of up to Rs 2.5 per litre to effect a Rs 5 per litre reduction in pump rates.

The price cuts would be effective from midnight tonight.

Finance Minister Arun Jaitley said the excise duty cut would have an impact of Rs 10,500 crore on central government's tax revenues.

Jaitley has also asked state governments to follow suit by cutting a sales tax or VAT by a similar amount.

However, the Congress hit out at the Modi government over what it described as a "meagre" reduction in excise duty on petrol and diesel, saying it is like applying a band-aid after inflicting a thousand wounds on the people of the country.

Congress chief spokesperson Randeep Surjewala claimed it was a "panic reaction" by the government after facing public ire and an "imminent defeat" for the BJP in upcoming assembly elections in five states, and said the step will bring little relief to the people as it is like "reducing death sentence to life imprisonment".

The fuel prices had been going up every day for last few weeks, burning a hole in people's pockets. In Mumbai, petrol rates had breached Rs 90 per litre. 

► Maharashtra CM Devendra  Fadnavis said: "Maharashtra government also decided to give additional relief of Rs 2.50 per litre on petrol to give a total benefit of Rs 5 per litre in the state of Maharashtra."

Thanking Prime Minister Narendra Modi and Union Finance Minister Arun Jaitley, Fadnavis said the reduction in fuel prices will give a huge relief to citizens.

— Devendra Fadnavis (@Dev_Fadnavis) October 4, 2018

Thank you Hon PM @narendramodi ji and Union Minister @arunjaitley ji for reducing ₹2.50/litre on both Diesel and Petrol. This will give huge relief to common citizens.

► 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 decided to reduce Rs.2.50 on both petrol & diesel. Thus petrol & diesel wd be Rs. 5 cheaper in the State of Gujarat."

► Jharkhand CM Raghubir Das said: The state government has also decided to give an additional relief of Rs 2.5/litre on diesel in the state.

► Tripura government has also slashed the prices of fuel.

► Uttar Pradesh CM Yogi Adityanath said that the state government has also reduced the price. 

► Madhya Pradesh government has also decided to give an additional relief of ₹2.5/litre on Petrol and Diesel to give total benefit of ₹5/litre in the state, tweeted Madhya Pradesh CM Shivraj Singh Chouhan.

► However, Bihar Deputy CM Sushil Modi said that they haven't received any letter from Jaitley  ji . "First we will see the order then make a decision on petrol and diesel. Each and every state has their own situation so first let the letter come," he said.

► Meanwhile, Karnataka CM HD Kumaraswamy said that they have already cut the price by Rs 2 last month.

► Assam CM Sarbananda Sonowal said - "Welcome decision by the Centre to cut down prices of Petrol and Diesel -- a decision taken in the interest of the common people. Many thanks to PM Shri @narendramodi ji. #FuelPriceCut," tweeted the CM.

► Haryana government has also decided to give an additional relief of ₹2.5/litre on Petrol an Diesel to give a total benefit of ₹5/litre in the state, said Finance Minister Captain Abhimanyu. 

► Himachal Pradesh CM Jai Ram Thakur said that the state government has also decided to give an additional relief of ₹2.5/litre on petrol and diesel to give a total benefit of ₹5/litre in the state.

Jammu and Kashmir: Petrol and Diesel prices in Jammu and Kashmir have been slashed by Rs 5 per litre, the state government. "The state government this evening announced matching cut of Rs 2.50 per litre in fuel prices commensurate with the price cut of Rs 2.50, announced by the central government earlier today," an official spokesman said.