Published: Сб, Октября 06, 2018
Economy | By

Here is how Twitterati reacted to cut in fuel prices

Here is how Twitterati reacted to cut in fuel prices

Oil marketing companies, simultaneously, will take a Re 1 per litre hit as well.

In the process, the Modi government also scored an own goal against its pet theme of simultaneous polls as some citizens prayed for "an election a month or a week" to keep prices down.

India is cutting prices of petrol and diesel by 2.50 rupees ($0.03) a litre, Finance Minister Arun Jaitley said on Thursday, the government's latest step to tackle the impact of a sharp rise in crude oil prices and a weak local currency. "As the Government of India has already reduced the rate on petrol and diesel of Rs 2.50 per litre, thus the total benefit to the consumers (in Chandigarh) will be Rs 4 per litre on petrol and diesel", it said.

Maharashtra and Gujarat governments were among the first to announce a matching Rs 2.50 cut.

India's government has introduced a fuel relief as prices at the pump rise inexorably, following soaring global benchmarks, Indian media report, citing the official statement by Finance Minister Arun Jaitley.

Congress spokesperson Randeep Singh Surjewala said the whole exercise was a hoax since the Modi government had raised duties on petrol by 211 per cent and diesel by 443 per cent during its four years in office.

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"And reducing oil prices, if you say is good politics, so be it", said Mr Jaitley.

Mr Jaitley said that since states taxes on petrol and diesel was on ad valorem basis, they will only have to forego additional revenue which came after oil prices had started rising.

Three BJP-ruled states - Rajasthan, Madhya Pradesh and Chhattisgarh - are scheduled to go to the polls later this year. Government taxes are estimated to account for almost 40% of retail prices of petrol and diesel.

On Thursday, some tweeters felt that the idea of simultaneous polls, pushed by the Modi government, was anti-people. Oil prices were on freeze for 19 days during the Karnataka Assembly polls in May this year despite a spike in global crude prices.

Devendra Kumar Pant, chief economist at India Ratings and Research, said the move could act as a "minor comforting factor" for the central bank during its monetary policy meeting scheduled on Friday, as a fuel price cut will ease retail inflation.

While it may seem the Indian government certainly has room for slashing taxes further on fuels, the recent cut is estimated to cost the government ₹2.7 trillion.

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