7 BJP-ruled states announce additional petrol, diesel price cuts
New Delhi/IBNS: Hours after the Centre announced a cut in excise duty on petrol and diesel by Rs 5 and Rs 10 respectively, seven BJP-ruled states - Assam, Tripura, Manipur Karnataka, Goa, Himachal Pradesh and Uttarakhand - have announced additional cuts in prices on Wednesday.
The price cuts will come into effect from Thursday - November 4, the day of Diwali.
After announcing the reduction in excise duty on diesel and petrol, the Centre requested the states to commensurately reduce VAT on petrol and diesel to give relief to consumers.
The move is aimed at providing relief to people struggling under the impact of spiralling fuel prices.
Assam, Tripura, Manipur, Karnataka and Goa have announced cuts in the prices of both the fuel by Rs 7 per litre in addition to the Centre's relief, media reports said.
Amid a continuous rise in prices of petrol and diesel in recent months, the Centre cited it to be the effect of global upsurge in crude oil prices.
"Today's decision is expected to further spur the overall economic cycle," the Centre said in a statement.
"The massive reduction in excise on diesel will come as a boost to the farmers during the upcoming Rabi season," the Indian government said in a statement on Wednesday," the government said, adding that the reduction in excise duty on petrol and diesel will also boost consumption and keep inflation low, thus helping the poor and the middle class