Petrol diesel prices come down: Check todays fuel prices here

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Addressing mediapersons here, Congress spokesman Randeep Singh Surjewala called the cut "a panic reaction in the face of public anger" ahead of assembly polls in four states.

Chhattisgarh, Assam and Tripura also reduced the fuel prices by Rs 2.50 per litre, while Andhra Pradesh and flood-hit Kerala refused the centre's request.

Devendra Kumar Pant, chief economist at India Ratings and Research, said the move could act as a "minor comforting factor" for the central bank during its monetary policy meeting scheduled on Friday, as a fuel price cut will ease retail inflation. PM Modi consulted Union Finance Minister Arun Jaitley and Oil Minister Dharmendra Pradhan. He said states ruled by Congress and other opposition parties have already reduced taxes on fuel, while the Congress government in Punjab will do so soon. When the global crude oil prices were at a historic low, the government continued to collect higher taxes on fuel, a strategy that in part helped it lower the fiscal deficit to 3.5% of GDP in the latest fiscal year. However, opposition ruled states remained non-committal on reducing Value-Added Tax.

Apart from this, the oil marketing companies in India have been asked to bear the remaining burden of Re 1 per every litre and with this, the customers will get a relief of Rs 2.50 per litre on both petrol and diesel.

"We have authorised the oil marketing companies to raise $10 billion through foreign currency oil bonds", he added. The Modi government has raised it to Rs 19.48 per litre. Of this, IOC's share would be roughly half and the rest split equally between HPCL and BPCL.

The Finance Minister said, the prices of crude oil and domestic developments in the United States have impacted the economies across the world.

"I hope all state governments do this, and they announce this so that consumers benefit by 5 rupees", Jaitley told reporters.

Nearly half of the fuel price is made up of taxes. Whereas in Mumbai, petrol was marked at Rs 86.97 per litre and diesel was priced Rs 77.45 per litre. The chief minister said that the Maharashtra government has a positive stand on bringing petrol and diesel under the ambit of Goods and Services Tax. "Kindly bring petrol and diesel under the purview of GST", he tweeted in Hindi. This means that petrol will continue to be expensive in Delhi. It stands at Rs 15.33 per litre now. Jaitley expressed confidence in maintaining the fiscal deficit target for the current financial year despite the reductions.

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