Petrol and diesel prices, which have been rising almost every day, will see a drop of at least Rs 2.5 per litre.
Under Jaitley’s three-point plan, the cut in petrol and diesel prices may even extend to Rs 5 per litre.
The first aspect of this plan involves the Centre. The Centre is cutting the excise duty it charges on petrol and diesel by Rs 1.5 per litre.
The second aspect of the plan deals with Oil Marketing Companies (OMCs) who will simultaneously take a Re 1 per litre hit on their revenue.
The third part of the plan involves the various state governments. Jaitley said that he will write to the different state governments asking them to reciprocate and reduce their taxes by a similar Rs 2.5 per ltire.
What this means is that effectively, the prices of petrol and diesel will come down immediately by Rs 2.5 per litre. The price cut may go up to Rs 5 per litre in states that heed Jaitley’s recommendation.