There has been no change in the prices of petrol and diesel today after Finance Minister Nirmala Sitharaman announced a reduction in excise duty by Rs 8 per liter on petrol and Rs 6 per liter on diesel on Saturday.
Excise duty cut will translate into shortfall 9.5 liters on petrol in Delhi and Considering its impact on other duties, diesel has been hiked by Rs 7 per litre. Petrol price in Delhi from today, when excise duty cut is effective, will be expensive 96.72 per liter Currently 105.41 liters while the price of diesel will be 89.62 per liter as opposed to Now 96.67.
A day after the central government announced reduction in fuel prices, the Maharashtra administration on Sunday slashed Value Added Tax (VAT) on petrol and diesel. on VAT petrol has been cut by 2.08 per liter and Diesel has been cut by Rs 1.44 per liter.
After reduction in excise duty and VAT in Mumbai, one liter of petrol will be charged 111.35 and one liter diesel 97.28. In Chennai, petrol and diesel prices are down 102.65 more 94.24 per liter. Petrol price in Kolkata is 106.03 and diesel is 92.76. One liter of petrol will be charged in Bangalore 101.94 and one liter diesel will cost 87.89. One liter of petrol will be charged in Gurugram 97.81 more 90.05 for one liter diesel.
The central government levies excise duty on petrol. Similarly, the state government levies ad valorem VAT on fuel. VAT on petrol varies from state to state. Since the Center has reduced excise duty on diesel and petrol, VAT automatically comes down.
The Center has appealed several times to the states, especially the non-BJP ruled states, to reduce VAT on petrol and diesel, but the states did not do so.
The move comes after the government’s inflation management was criticized by opposition parties and economists. The rise in prices of all commodities from fuel to vegetables and cooking oil pushed wholesale price inflation to a record high of 15.08 per cent in April and retail inflation to an eight-year high of 7.79 per cent.