Maharashtra cuts diesel price by ₹1.56 per litre

Together with Centre’s reduction, diesel to be cheaper by ₹4.06 per litre

Mumbai,05/10/2018: A waiting to refill his vehicle tank a rider looks at the new reduced prices of petrol and diesel. Finance Minister Arun Jaitley announced a Rs. 1.5 cut in excise duty levied on petrol and dieselas a measure to curb rising fuel prices.Petrol prices in Mumbai dropped to Rs 86 - 87 per liter while diesel fell to Rs. 77 - 78 per liter in Mumbai on Friday, 05 October 2018. Photo: Supreet Sapkal.

A day after reducing an additional tax of ₹2.5 on per litre of petrol, matching the reduction by the Centre, the State government on Friday night announced a cut of ₹1.56 per litre of diesel, making it cheaper in the State by ₹4.06 per litre.

“Happy to announce relief on Diesel too! After the relief of ₹2.50/litre by GoI, Maharashtra Govt decided to further add it’s share of ₹1/litre along with 56 paisa tax concession will make it ₹1.56/litre & the effective cost reduction will be ₹4.06/litre in Maharashtra,” Chief Minister Devendra Fadnavis said on Twitter.

The decision will cost the State ₹1,725 crore in revenue.

On Thursday, the State government had announced an additional cut of ₹2.5 per litre on petrol following the Union government’s decision to reduce fuel prices by ₹2.5 per litre. At the time, the government had said an assessment was being made on a cut in diesel prices.

Earlier in the day, while speaking to reporters in Nashik, Mr. Fadnavis said the State government has a positive stand on bringing petrol and diesel under the ambit of Goods and Services Tax. He also lauded Prime Minister Narendra Modi and Finance Minister Arun Jaitley for the Centre’s decision to reduce fuel prices.

(With PTI inputs)