Indian Government Announces A Reduction In Fuel Prices

The Indian Government announced some measures to combat the skyrocketing prices of fuels. Finance Minister Arun Jaitley at a press conference announced a deduction of Rs. 2.50 per litre in petrol and diesel prices today.

The reduction was a relief to the people struggling with the increased prices for a few weeks. The Central Government declared the reduction of excise duty by Rs. 1.50/litre in collaboration with oil marketing companies (OMCs) who will reduce the price by Rs. 1/litre.

Arun Jaitley, worried about the high rates of diesel crossing approximately Rs. 80, said with the help of OMCs run by state governments, the amount can be reduced by Rs. 5/litre. He pleaded the state governments to reduce the taxes and implement the new plan immediately. He proposed a plan which requires collaboration between the Central Government, state governments and OMCs.

This plan by the Government will be extremely helpful for the people. The reasons cited behind the hike in fuel prices are the continuous fall of the Indian Rupee against the U.S. dollar and the rapidly increasing crude oil prices.