Unbelievable, but petrol, diesel prices can fall by Rs 5! However, there is a catch! Modi govt not to interfere

FM Arun Jaitley has slashed excise duty on petrol and diesel and the consumers will see their fuel bills fall in a major way. FM said, "Excise duty to be reduced by Rs.1.50 & OMCs will absorb 1 rupee. So, a total of Rs.2.50 will be reduced on both diesel and petrol." This is a big relief for all consumers. However, what has really sparked some interest in consumers is the fact that petrol and diesel prices can fall by as much as double that amount! Yes! Petrol and diesel prices can fall by as much as Rs 5 if some other people take as strong an action as Modi government just did.

Notably, if state governments reduce VAT upon petrol and diesel by a similar amount, then the price on both these fuels will be reduced by Rs 5! Arun Jaitley said that Modi government cannot force a decision on the states and that they are free to take any decision they choose. With FM showing the direction, states may well follow suit. However, it all depends on whether the states are willing to absorb such a big blow to their revenues.

Arun Jaitley said, "We are writing to the state govts that as the central govt is cutting Rs 2.50 on both petrol & diesel, they do the same." Will the states bite? Their revenues have been fattening for months and it is time they loosened their purse a little to give relief to the common man!

According to TV reports, BJP-ruled states like Maharashtra, Gujarat and Uttar Pradesh have decided to give further relief of Rs 2.5 by cutting VAT on the fuel prices. This will ensure a relief of Rs 5 per litre on the fuel prices.