As BJP States Follow Centre in Cutting Fuel Prices, Kerala Refuses

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All four states are BJP ruled.

The government Thursday announced a Rs 2.50 a litre cut in petrol and diesel prices, factoring in excise duty reduction of Rs 1.50 per litre and asking oil companies to absorb another 1 rupee per litre.

G Vinay Kumar, general secretary of Telangana Petroleum Dealers Association, said the fuel prices were more likely to see a dip from Thursday midnight.

After months of rising fuel prices with record high petrol and diesel prices in major Indian cities, the Indian government has finally intervened, cutting petrol and diesel prices by ₹2.50 ($.034) a litre in several states across India.

The price of the fuel in Delhi, Chennai and Kolkata is Rs 73.24, Rs 77.42 and Rs 75.09 per litre, respectively. "For example, the kind of investments taking place in rural India is adding more to the size of India's middle class", the minister said. In Lucknow, every litre of petrol costs Rs 79.12, whereas the same amount of diesel is selling for Rs 71.28.

He also said he would write to all the states to cut their respective taxes.

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"We have authorised the oil marketing companies to raise $10 billion through foreign currency oil bonds", he added.

It had resisted the call for a reduction in excise duty since May when retail rates first shot up and then again from mid-August when fuel prices started moving up.

However, the Federation of All Maharashtra Petrol Dealers Association (FAMPEDA), Chairman, Uday Lodh, while welcoming the reductions, pointed out that the daily price increase by the Oil Marketing Companies will continue as per the global crude oil price fluctuations. They were raised a day after the polls got over.

Assam CM Sarbananda Sonowal said - "Welcome decision by the Centre to cut down prices of Petrol and Diesel - a decision taken in the interest of the common people". The prices started going up after voting was over on December 14. It is to be noted that the Maharashtra government has reduced the price of petrol only and not diesel.

However, very soon, the prices can be reduced by Rs 5 as well!

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