Major relief for common man as fuel prices come down by Rs 2.50 a litre

1. Major relief for common man as fuel prices come down by Rs 2.50 a litre Major relief for common man as fuel prices come down by Rs 2.50 a litre Jaitley said the move followed Brent crude oil touching a four-year high of $86 a barrel on Wednesday and interest rates in US reaching a seven-year high The government on Thursday announced an excise duty cut of Rs 1.50 a litre for petrol and diesel. Additionally, oil companies are to be asked to absorb another Re 1 per litre. Together, these price reductions would add up to Rs 2.50 a litre — a significant relief at a time when rising fuel prices have been a cause for concern among the common man.Finance Minister Arun Jaitley on Thursday said the excise duty cut would have an impact of Rs 105 billion on the central government's tax revenues.He also said he would urge state governments to follow suit and cut 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 capitals, petrol is sold at Rs 84 a litre and diesel at Rs 75.45.

2. Jaitley said the move followed Brent crude oil touching a four-year high of $86 a barrel on Wednesday and interest rates in US reaching a seven-year high.Inflation in India, however, was still moderate at less than 4 per cent and higher direct tax collections give comfort with regard to fiscal deficit, he said, adding that domestic macroeconomic indicators were strong and stable, except for current account deficit. Read our full coverage on Fuel prices here BS/ BUSINESS STANDARD