Oil rises on big decline in U.S. crude stocks

By Administrator_India

Capital Sands

Puducherry government on August 25 announced a tax cut in petrol prices. The territorial administration has cut value-added tax (VAT) on petrol by 3 percent.

The decision on the reduction was taken by Chief Minister N Rangasamy at a meeting of the territorial cabinet earlier and was approved by Lieutenant Governor Tamilisai Soundararajan, said an official press release.

With the cut, the price of petrol would be reduced by Rs 2.43 per litre in Puducherry and Karaikal regions.

As per Indian Oil’s website, the petrol currently retails at Rs 101.81 a litre and diesel costs Rs 92.73 in Puducherry.

Earlier, Tamil Nadu had announced a similar tax cut on petrol. The DMK government had reduced tax by Rs 3 per litre on petrol.

The tax cut will result in a loss of Rs 1,160 a year to the state, Finance Minister P Thiaga Rajan had said on August 12.

Petrol currently costs Rs 99.20 in Chennai, while diesel retails at Rs 93.52 in Tamil Nadu’s capital.

Fuel prices reached record highs across all metros after incessant hikes in rates since May.

The price increase since May 3 has pushed petrol rates above the Rs 100-a-litre mark in most places in 15 states including Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Odisha, Kerala, Bihar and Punjab and at a couple of districts in Uttar Pradesh and Haryana.