Bowing to pressure, the Center on Wednesday cut excise duty on petrol and diesel by a record ₹5 and ₹10 per litre.
A day after the central government reduced excise duty on fuel, several states reduced Value Added Tax (VAT) on petrol and diesel to provide some relief to consumers.
Gujarat, Mizoram and Sikkim governments have reduced the value added tax (VAT) on petrol and diesel by Rs 7 per liter. The Haryana government on Thursday also announced a reduction in VAT on fuel, making it cheaper by Rs 12 a liter on Diwali in the BJP-JJP-ruled state. Odisha also reduced petrol, diesel prices ₹3 per litre.
The Uttar Pradesh government on Wednesday also reduced VAT on two fuels to make it cheaper by Rs 12 per liter in the state.
Apart from this, half a dozen BJP-ruled states have announced reduction in VAT rates but so far only four have issued formal notification. Puducherry saw an additional ₹7 per liter reduction in both petrol and diesel prices due to the reduction in Value Added Tax (VAT).
In Goa, there was an additional cut of Rs 5.47 per liter in petrol and Rs 4.38 on diesel.
Arunachal Pradesh Chief Minister Pema Khandu announced that his government has reduced the value-added tax rates on petrol and diesel by 5.5 per cent. Petrol will be cheaper by Rs 10 per liter and diesel by around Rs 15 in the state.
“Chief Minister Bhupendra Patel has announced a reduction in the prices of petrol and diesel in Gujarat by Rs 7 per liter,” Gujarat CMO said in a statement issued late last night.
“Following Prime Minister Narendra Modi’s decision to reduce excise duty on petrol and diesel, the Gujarat government has also decided to reduce VAT on petrol and diesel and implement this deduction from midnight across the state,” the statement said.
With this decision, petrol will now cost ₹95.13 per liter and diesel ₹89.12 per liter in Ahmedabad, while the cost of both the fuels in Surat will be ₹94.89 and ₹88.89 respectively.
“… On the auspicious occasion of Diwali, I would like to announce that the state government will reduce the prices of petrol and diesel in the state by 7/(seven) per liter as a Diwali gift. This is today i.e. 04/11″. /2021,” tweeted Sikkim Chief Minister Prem Singh Tamang.
With the reduction in taxes announced by the Sikkim government soon after midnight, petrol will be ₹12 a liter and diesel ₹17 a liter cheaper in the state.
Petrol was being sold at Rs 110.60 per liter and diesel at Rs 100.80 per liter in the state capital Gangtok on Wednesday.
Chief Minister Zoramthanga tweeted, “Happy to announce that the Mizoram government will reduce VAT on petrol and diesel by Rs 7 each with immediate effect from today.”
On Thursday, the price of petrol in the state capital Aizawl fell to Rs 101.30 per liter, while diesel is now being sold at Rs 86.37 per litre.
“On the occasion of Diwali, the central government has announced reduction in the prices of petrol and diesel. Taking this further, the Haryana government has also reduced the rate of VAT on petrol and diesel in the state.
Haryana Chief Minister said, “Now both petrol and diesel will become cheaper by ₹12 per liter across Haryana.”
The Nitish Kumar government in Bihar on Thursday reduced its VAT rate on petrol and diesel by more than ₹3 per liter. “Following the Centre’s move to reduce the prices of petrol and diesel, the state government has decided to provide additional relief to the people by reducing the VAT rates. Petrol prices will be reduced by ₹3.20 per liter whereas for diesel It will be ₹ 3.90 per litre,” Mr Kumar tweeted.
Bowing to pressure, the Center on Wednesday cut excise duty on petrol and diesel by a record ₹5 and ₹10 per litre.
According to the price notification of the state-owned fuel retailers, the price of petrol in Delhi is ₹ 103.97 per liter as against ₹ 110.04 per litre. Diesel rate was accordingly reduced to Rs 86.67 per liter from Rs 98.42 per litre.
Petrol price in Mumbai has been reduced by Rs 5.87 to Rs 109.98 per liter and diesel by Rs 12.48 to Rs 94.14 per liter. In Kolkata, the price of diesel was reduced by Rs 5.82 to Rs 104.67 per liter and that of diesel by Rs 11.77 to Rs 89.79 per litre.
Petrol price in Chennai has been reduced by ₹5.26 to ₹101.40 per liter and diesel from ₹11.16 to ₹91.43 per liter.
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