New Delhi, Oct 04, 2018 : Finance Minister Arun Jaitley on Thursday announced that the petrol and diesel prices will be cut by Rs 2.50,News18 reported.
The excise duty will be reduced by Rs 1.50 and the Oil Marketing Companies (OMCs) will absorb one rupee. “Oil marketing companies will absorb Rs 1 from the central government cut on 2.50 relief on petrol and diesel,” Jaitley said in a press conference on Thursday afternoon.
Fuel prices have been on the rise since August 16 after the rupee dipped to its lowest value against the US dollar. The domestic unit hit a record low of 70.32 in early trade that day.
State-owned oil firms had in mid-June last year dumped the 15-year practice of revising rates on 1st and 16th of every month in favour of daily price revisions.
Arun Jaitley and Dharmendra Pradhan had met on Wednesday evening amid concerns of high fuel prices adding to farmers’ distress, particularly in the upcoming Rabi crops season, according to a PTI report.
The two ministers are believed to have discussed options to mitigate the impact of rising international oil prices and rupee dipping to new lows.
The finance minister added that the Central Government will not go back on deregulation. "We have to react to the situation and give relief without impacting fiscal deficit. We cannot do it at the cost of fiscal position and give it when it can absorb it," he said.