As petrol and diesel climbed to all-time highs, the central government finally reduced excise on fuel by Rs 2.50 and appealed to states to do the same. The government said that it would take a Re 1.50 hit on every litre of fuel sold and oil marketing companies would lose Re 1.
States like Andhra Pradesh and Rajasthan have already cut tax on fuel earlier. Andhra Pradesh had cut fuel prices by Rs 2 per litre and Rajasthan had announced a 4 percentage point cut.
Following the central government’s announcement, Maharashtra, Chhattisgarh and Gujarat also cut state tax on petrol and diesel. Read more