Petrol, Diesel Prices Slashed by Re 1 in West Bengal as Mamata Banerjee Govt Cuts Fuel Duties
File image of West Bengal Chief Minister Mamata Banerjee | (Photo Credits: PTI)

Kolkata, Sept 11: Fuel prices will be slashed by Re 1 in West Bengal as Mamata Banerjee government has accordingly reduced the duties levied on petrol and diesel. The decision comes shortly after Rajasthan and Andhra Pradesh governments reduced the VAT to bring down fuel rates by Rs 2.5 and Rs 2, respectively.

On Monday, the Centre had targeted states participating in the Bharat Bandh against surge in fuel prices, claiming that most state governments led by the Opposition parties charge exorbitant levies on petroleum products, which has contributed to the price hike.

While the states have been recommended to bring down the fuel rates, the Union government is unlikely to slash the central excise duties. According to a senior finance ministry official, a reduction of Rs 2 per litre on fuel will cost the exchequer Rs 30,000 crores in revenue, which in turn would contribute towards the widening of the fiscal deficit.

Meanwhile, fuel prices continued to rise on Tuesday, with petrol turning as costly as Rs 88.26 a litre in Mumbai and Rs 80.87 per litre in Delhi. Diesel rates were also hiked by 14 paise and 15 paise in Mumbai and Delhi, respectively.

In Kolkata, the current petrol price is Rs 83.75 per litre, whereas, diesel is being charged at Rs 75.82 a litre. The Re 1 reduction will be applicable tomorrow on the revised rates which will be announced by oil corporations at 6am.