After the central government cut excise duty on petrol and diesel to cool the prices of auto fuel, several states are also following the suit by reducing value-added tax (VAT). So far, Rajasthan, Odisha and Kerala governments have cut VAT on petrol and diesel. The Centre has cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 per litre.
The Kerala government has announced to cut tax on petrol and diesel prices by Rs 2.41 and Rs 1.36 per litre, respectively, while the Rajasthan government reduced VAT on petrol by Rs 2.48 per litre and diesel by Rs 1.16 per litre. The Odisha government has also reduced VAT on petrol and diesel by Rs 2.23 and Rs 1.36 a litre, respectively, according to a Moneycontrol report.
On Sunday, the price of petrol in Thiruvananthapuram stood at Rs 107.71 per litre and that of diesel was Rs 96.52 per litre. In Jaipur, petrol was retailing at Rs 108.48 per litre and diesel was selling at 93.72. In Bhubaneswar, the per-litre price of petrol was Rs 103.19 and that of diesel stood at Rs 94.76.
Rajasthan Chief Minister Ashok Gehlot in a tweet said, “Due to the reduction in the prices of petrol and diesel by the central government, the state government will reduce VAT by Rs 2.48 per litre on petrol and Rs 1.16 per litre on diesel. With this, petrol will be cheaper by Rs 10.48 and diesel by Rs 7.16 per liter in the state."
The central government on Satursday cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 per litre. The cut was estimated to translate into a reduction of Rs 9.5 per litre in petrol prices and Rs 7 per litre in diesel, after taking into account its impact on other levies. Prices of petrol and diesel were increased by the Oil Marketing Companies (OMCs) by Rs 10 per litre in 14 hikes that took place between March 22 and April 6.
On the eve of Diwali in November 2021, the central government had also reduced excise duty on petrol and diesel. It had then cut the duty on petrol by Rs 5 per litre and on diesel by Rs 10 per litre.
While announcing the central government’s decision to cut excise duty on Saturday, Nirmala Sitharaman in a tweet said, “I wish to exhort all state governments, especially the states where reduction wasn’t done during the last round (November 2021), to also implement a similar cut and give relief to the common man."
After the tax cut, the price of petrol in Delhi has been reduced to Rs 96.72 per litre, while the per-litre diesel price now stands at Rs 89.62. In Mumbai, petrol was retailing at Rs 111.35 per litre after the latest excise duty cut, while diesel was being sold at Rs 97.28 a litre.
Read all the Latest News , Breaking News and IPL 2022 Live Updates here.