In Chennai, petrol and diesel retailed at Rs 85.04 per litre and Rs 77.73 per litre, respectively. In Bengaluru, petrol and diesel are being sold for Rs 82.46 per litre and Rs 73.90 per litre respectively.
On top of the excise duty cut, which will cost the exchequer Rs 21,000 crore in a full year, the government has asked oil marketing companies to share a burden of Re 1 per litre of fuel, which will result in under-recoveries.
Ramdas Athawale, whose Republican Party happens to be a BJP ally, assured that the BJP led central government is formulating ways to bring down the fuel prices. However, he also underlined that the prices for fuel can be reduced if the respective state governments cut their taxes.
On Wednesday, NITI Aayog Vice Chairman Rajiv Kumar said the government need not respond to daily or weekly changes in the oil prices as they declined in July after showing northward movement a month ago.