After months of “fuel hike” headlines, the Central government has finally broke its slumber and announced a cut down of Rs 2.5 per litre of petrol and diesel. While this might look like a mere “band-aid” relief compared to the near-daily fuel hikes since past two months, it is still some relief from the highest-ever fuel costs.
The Central government had reportedly been discussing about reducing the excise duty on fuel to control the uncontrolled hikes in prices of petrol and diesel since last two months. And finally, the Centre announced a slash down in fuel prices on Thursday, making both petrol and diesel by Rs 2.5 per litre. Furthermore, the Centre has also nudged state governments to follow its footstep and cut VAT levied on fuels to bring much-needed relief to citizens from the burden of high fuel prices.
So following the central excise reduction, a total of 13 BJP ruled states has announced to cut-down the VAT by 2.5 rupees – of which, Gujarat and Maharashtra were the first to announce; followed by Tripura, Madhya Pradesh, Chhattisgarh and several others also revised the prices. The government has also instructed the state-run oil marketing companies to reduce the fuel prices by 1 rupee due to fuel price drop by around 2.5 rupees in non-BJP rules states.
But everything comes with a political twist and the Opposition is seeing this price drop as a band-aid to the deep wound, and it is a panic reaction against the people’s anger. This massive price drop in the fuel commodity also affected the share market. The share price of the retailer’s market was dropped by 10% after the announcement of the fuel price drop by Arun Jaitley. This central excise duty will leave a 10,500 crore hole in the Central Government’s pocket during this financial year. The new fuel prices will is likely to be implemented by this evening.