Home / International/ India cuts petrol, diesel prices to offset oil rise, rupee losses

India cuts petrol, diesel prices to offset oil rise, rupee losses

Comments / {{hitsCtrl.values.hits}} Views / Friday, 5 October 2018 00:00

NEW DELHI (Reuters): India cut the retail prices of petrol and diesel by Rs. 2.50 ($ 0.034) per litre, Finance Minister Arun Jaitley said on Thursday, the Government’s latest step to tackle a sharp hike in crude oil prices and the impact of a weak rupee.

The cut is a result of a reduction in the excise duty of Rs. 1.50 per litre with oil marketing companies taking a revenue hit of Rs. 1 per litre, he said.

Jaitley also asked state governments to cut the value added tax on fuel by a further Rs. 2.50 per litre. “I hope all state governments do this, and they announce this so that consumers benefit by Rs. 5,” he told reporters.

The Nifty Energy Index fell 6.14% lower on Thursday in reaction to the news.

Shares in Indian Oil Corp, the country’s biggest oil refiner, dropped 11.4%. Hindustan Petroleum Corp closed down 13.5% while Bharat Petroleum Corp Ltd fell 12.4%. Reliance Industries shares closed down 6.9%, their biggest single-day fall since Aug. 24, 2015.

Taxes on petrol and diesel, which account for more than a third of retail fuel prices, are one of the biggest sources of income for the government, and a sensitive issue for voters.

Modi’s ruling party is facing a tough election in three key states this year followed by a national election due by May.


Share This Article


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Economic and regional issues upstage Hindutva plank in Indian State elections

Saturday, 15 December 2018

Results of the recently-concluded State Assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana and Mizoram show that economic and regional issues have upstaged “Hindutva” – the ideology of the ruling Bharatiya Janata Party (BJ

Rationality of Sirisena’s irrationality

Saturday, 15 December 2018

Man becomes a little cog in the machine, and, aware of this, his one preoccupation is to become a bigger cog said Max Weber, the founding father of sociology. Maithripala Sirisena became a small cog after the 19th Amendment. Then he decided to be a b

The Pinguttara of our politics

Saturday, 15 December 2018

Tale of Pinguttara There is an interesting piece in the LankaEnews of 13 December that refers to President Maithripala Sirisena as a ‘Pinguttara.’ I like to pick up that idea and develop on that. ‘Pinguttara,’ is a term that is ascribed to so

Overcoming the crisis: The second freedom struggle

Friday, 14 December 2018

The crisis that has been developing in Sri Lanka, manifesting itself in varied forms at different times since independence, has now taken the form of a constitutional crisis, threatening the survival of the Sri Lankan State. Regardless of the Court

Columnists More