Markets

Petrol price cut: Jaitley questions commitment of Rahul, his allies

Petrol price cut: Jaitley questions commitment of Rahul, his allies

As of Thursday, petrol prices in Delhi had climbed to ₹84 per litre and ₹91.34 in Mumbai; diesel was being sold at ₹75.45 and ₹80 in Mumbai. Yesterday, media reported that the Modi government had allowed local companies affected by the rise in oil prices to borrow internationally up to US$10 billion.

Finance Minister Arun Jaitley, who made the announcement, pegged the excise duty cut impact at Rs 10,500 crore. The Maharashtra government had Thursday reduced the prices of petrol by Rs 2.50 per litre.

With a similar increase, petrol is now priced at Rs 83.52 and Rs 84.89 per litre in Kolkata and Chennai, respectively.

Opposition-ruled Bengal, Kerala and Karnataka, which had cut their Value-Added Tax rates on auto fuels by Re 1 to Rs 2 per litre last month, have said they will not cut rates again.

Just last month, the Centre had said that it had no intention to cut excise duties on petrol and diesel and jeopardise its tax revenues. 1 drop by oil marketing companies, taking the cut in fuel prices to Rs. 2.50. Chandigarh has reduced the fuel prices by Rs 1.50.

Manchester United team bus late AGAIN for Champions League clash with Valencia
Mourinho is understood to have vented his anger about the poor planning as the bus crawled along the short route to Old Trafford. United are 10th in the Premier League table after seven games and have already lost three times.

"In general, what's driving emerging market weakness is a stronger United States economy ... there is a lack of clarity on the effectiveness of rate hikes as a currency defence", said Sunil Sharma, chief investment officer with Sanctum Wealth Management.

Petrol, diesel rates: On Wednesday, Brent hit its highest price since late 2014, at $86.74. He said that the central government will reduce excise duty by Rs 1.5 while oil companies will absorb the remainder. Diesel prices in the city however saw an effective decline of 70 paise, falling to Rs 76.75 per litre.

In a major relief for consumers across the country, the Centre today slashed the prices of petrol and diesel by at least Rs 2.50 per litre. Any further revenue loss, however, could widen the fiscal deficit.

"Even Rahul Gandhi, whose party had inflicted a double digit inflation on India during the past five years of UPA-II, gave television bytes and released tweets advocating a price reduction", Jaitley said. "India's ability to maintain the present growth rate for a decade or two is reasonably certain", he said.

On OMCs absorbing Re 1, he said they would adjust it over present and future prices.