A sigh of breather came this Thursday for common masses after Arun Jaitley announced 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. Finance Minister further made a fervent appeal to governments to follow suit by cutting a sales tax or VAT by a similar amount.  Taking a cue from this statement, 11 states followed suit and reduced the taxes on petrol and diesel by similar amount.

The states which followed the appeal of finance minister are Uttar Pradesh, Gujarat, Maharashtra, Tripura, Jharkhand, Madhya Pradesh, Chhattisgarh,  Jammu and Kashmir, Himachal Pradesh, Assam and Haryana announced to decrease VAT on petrol, diesel by Rs 2.50.

Though the opposition leader P Chidambaram claimed that government can reduce the price on Petrol and Diesel by Rs 25, but will not do it. “Central government saves Rs 15 on every litre of petrol due to fall in crude oil prices. Central government puts additional tax of Rs 10 on every litre of petrol. “It is possible to cut up to Rs 25 per litre, but the government will not. They will cheat the people by cutting price by Rs 1 or 2 per litre of petrol,” he said on Twitter.

With this the politics on oil seems to be soaring to new heights and it surely will impact the forth coming parliamentary elections in country.

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