Fuel prices cut Rs 2/litre before poll announcement

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After remaining static for almost two years, fuel prices were cut by the oil marketing companies. All the state-run OMCs cut prices of petrol and diesel by Rs 2 per litre, effective Friday. The announcement was made just hours before the model code of conduct of the general election is scheduled to kick in. Petrol in Delhi will now cost Rs 94.72 a litre as compared to Rs 96.72 per litre previously while the price of diesel will now come to Rs 87.62 as opposed to Rs 89.62 currently, a price notification of state-owned fuel retailers said.

The reduction in auto fuels comes just a week after a Rs 100 per cylinder reduction in cooking gas LPG price was announced. That reduction brought down the rates of LPG for common users to Rs 803 per 14.2-kg cylinder and that for the poor who got free connections under the Ujjwala scheme to Rs 503 after accounting for Rs 300 per bottle subsidy that the government gives.

Petrol in Mumbai will cost Rs 104.21 per litre from Friday, Rs 103.94 in Kolkata, and Rs 100.75 in Chennai.

A litre of diesel will be priced at Rs 92.15 in Mumbai, Rs 90.76 in Kolkata, and Rs 92.34 in Chennai. Rates differ from state to state depending on the incidence of local taxes.

Earlier in the day, the Rajasthan government announced a 2 per cent reduction in VAT on petrol and diesel.

Local sales tax or VAT is the highest among metros in BJP-ruled Maharashtra and lowest in Delhi. With inputs from PTI