Petrol was sold at 83.85 rupees a litre, while diesel was sold at 75.25 a litre on October 3, according to state-run retailer Indian Oil Corp's website.
Jaitley attacked the opposition further asserting that non-BJP ruled states have not provided fuel price relief to consumers. They say the government is playing to the gallery by cutting fuel by a minimal margin at a time petrol and diesel have been increased by Rs 5.17 and Rs 4.83 respectively, in the past one month alone. This will reduce the overall price by about Rs 5. "First we will see the order, then make a decision on petrol and diesel [prices]", he added. He said that while the Centre has cut excise duty on petrol and diesel by Rs 1.50 per litre, the Oil Marketing Companies (OMCs) will further reduce prices by Re 1 per litre. They wanted states to take the lead. Gujarat government reduced petrol and diesel prices by Rs 2.50 per litre, while Maharashtra lowered petrol price by 2.50 per litre.
Reacting to Union Finance Minister Arun Jaitley's suggestion asking states to match the Centre's decision with a similar reduction in sales tax or VAT, State Finance Minister TM Thomas Isaac said it would adversely affect the state's revenue.
Global fuel prices, however, have been on the rise with the worldwide benchmark Brent crude nearing a four-year high of $86 per barrel earlier this week.
Speaking on the reason for price cut, the Finance Minister said that there has been a significant impact of higher interest rates in the United States and crude oil prices on rising fuel prices in the country. Global crude oil prices are linked to geopolity, fluctuation in the exchange rate as well as the tax structure of respective states and the Centre. Hence, petrol and diesel prices in Tripura too has reduced by Rs 5 per liter.
Jaitley was still speaking as of last updating this report.
Jaitley said the total impact of Rs 1.50 cut in excise duty is about Rs 21,000 crore for full year and Rs 10,500 crore the reminder of current fiscal.
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