India announces cut in petrol, diesel prices

NEW DELHI, Oct. 4  — The Indian government on Thursday announced to cut down petrol and diesel prices by 2.50 Indian Rupees (over 3 U.S. cents) per liter with immediate effect.
Announcing the government’s three-point plan to cut fuel rates, the country’s Finance Minster Arun Jaitley said the union government has decided to cut down excise duty on both petrol and diesel by 1.50 Indian Rupees per liter.
Then, the oil marketing companies in the country will decrease fuel prices by 1 Indian Rupee per liter, he added.
The third aspect of the plan, according to the minister, involves the various state governments which will reciprocate and reduce their taxes by a similar 2.50 Indian Rupees per liter.
Hence, effectively the price cut may go up to 5 Indian Rupees per liter in states. The state governments of Maharashtra and Gujarat states, both ruled by the ruling Bharatiya Janata Party, already announced cut of 2.50 Indian Rupees per liter.
Meanwhile, the Indian finance minister blamed international crude prices for the near-daily rise in fuel prices.
A continuously falling Indian Rupee and rising international oil prices have driven up domestic rates of petrol and diesel in India. (1 U.S. dollar equals to 73.69 Indian Rupees) – XINHUA