Diesel cheaper by Rs 4.06

Shares of oil marketing companies fell after finance minister Arun Jaitley said that the government has asked the companies to absorb Rs 1 cut on fuel prices

"Happy to announce relief on diesel too!" In the same period in 2016, the prices of the petrol and Diesel stood at around Rs 62 and Rs 50 and Rs. 66 and Rs 56 in Mumbai.

But. Overall Price Can Be Reduced By Rs 5 Per Litre.

. On Friday, petrol price in Delhi stood at Rs 81.50 per litre, while Diesel was priced at Rs 72.50 per litre.

After months of torturing the general public with soaring fuel prices, Finance Minister Arun Jaitely on Thursday announced a petty reduction of Rs 2.5 per litre on both diesel and petrol prices across the country. He added that the last time that the Centre asked states to provide relief to the common man "only BJP or NDA allies-led states" did that.

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On May 26, 2014, the price of crude oil (Indian Basket) was $108.05 per barrel in the worldwide market. PM Modi consulted Union Finance Minister Arun Jaitley and Oil Minister Dharmendra Pradhan. The government has upped its ante and steps has been taken to cut down on the borrowing by Rs 70,000 crore and it has allowed OMCs to raise $10 billion. Jaitley also urged state governments to further reduce VAT and other state-level taxes to further drop the price. The governments of Maharashtra, Gujarat, Chhattisgarh, Jharkhand and Uttar Pradesh - all under the rule of the Bharatiya Janata Party - have already said they will do so.

All the cuts will be effective from midnight, as clarified by Dr. Hasmukh Adhia, finance secretary.

Jaitley, however, said asking oil companies to bear a part some burden is not going back on deregulation. "Thus petrol & diesel wd be Rs. 5 cheaper in the State of Gujarat". Their prices are likely to come down to below Rs 85 a litre and Rs 80 a litre respectively on Friday.

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By lowering duties, the Narendra Modi government is borrowing a page from the rulebook of past governments that have lowered levies whenever worldwide oil prices shot up.

Opposition-ruled States like Karnataka, Andhra Pradesh, West Bengal and Kerala had already reduced Value-Added Tax but Congress-ruled Punjab is yet to take a call. Any further revenue loss, however, could widen the fiscal deficit.

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