GoAP reduces fuel prices

ITANAGAR, Oct 4: Following the Centre’s decision, the Arunachal Pradesh government has reduced the prices of diesel and petrol by Rs 2.5 each, effective from the midnight of Thursday.
In a press statement, the chief minister’s office said the decision has been taken “in order to ease the difficulties of the common people and also to reduce the inflationary trend.
“The state government thus will bear the impact of the cut of Rs 2.5 per litre from the state VAT,” it said, adding that the step has been taken in public interest “despite loss in revenue of the state government.”
Earlier on Thursday, the central government 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 Re 1.
Finance Minister Arun Jaitley said the excise duty cut would have an impact of Rs 10,500 crore on the central government’s tax revenues.
He also asked state governments to follow suit by cutting a sales tax or VAT by a similar amount.
The reduction followed petrol and diesel prices touching new highs.
In Delhi, where the fuel prices are the lowest among all metros and most state capital, petrol is sold at Rs 84 per litre and diesel at Rs 75.45.
Jaitley said the move followed Brent crude oil touching a four-year high of USD 86 a barrel on Wednesday and interest rates in US reaching a seven-year high.
Inflation in India, however, is still moderate at less than 4 percent and higher direct tax collections give comfort with regard to fiscal deficit, he said, adding that domestic macroeconomic indicators are strong and stable, except for current account deficit (CAD). (PTI)