Assam cuts petrol, diesel prices by Rs 2.50 a litre

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Assam joined the states which opted to reduce fuel price Thursday with the state government slashing the prices of petrol and diesel by Rs 2.50 per litre which will provide the consumers in the state relief of Rs 5.

The reduced rates will come into effect in the state from midnight and follows the announcement by Union Finance Minister Arun Jaitley to pare prices of petrol and diesel by Rs 2.50 per litre, Assam Finance Minister Himanta Biswa Sarma said.

He tweeted, "Following Fin Minister Arun Jaitley announcement of cut of Rs 2.50 in petrol and diesel prices, glad to share that Assam Govt has also decided to reduce Rs 2.50 on both petrol and diesel per litre, making it Rs 5 less than the prevailing rates.

"The present rate (in Assam) is Rs 86.50/L for petrol and Rs 78.91/L for diesel ... After rate cut by GOI and Assam Govt, new rates would be Rs 81.50/L and RS 73.91/L respectively," he said.

The tax cut of Rs 2.5 per litre on both petrol and diesel shall mean a loss of revenue of Rs 400 crore for the state, Sarma said.

Assam joined BJP-ruled states like Uttar Pradesh, Gujarat, Madhya Pradesh, Haryana, Maharastra, Tripura, Jharkhand and Arunachal Pradesh to reduce the price of petrol and diesel.

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.