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Diwali bonanza: After Centre, several states announce additional cut in fuel prices

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NEW DELHI: In a Diwali bonanza for the common man, prices of petrol and diesel across the country came down on Thursday after the Centre and states announced heavy cuts in taxes.
Petrol, diesel prices had soared to record highs in the past couple of months.
The total increase in petrol price since the May 5, 2020 decision of the government to raise excise duty to record levels had totaled Rs 38.78 per litre. Diesel rates have during this period gone up by Rs 29.03 per litre.
After the introduction of the Goods and Services Tax (GST) regime, excise duty is levied only on petrol, diesel, ATF and natural gas. All other goods and services are under the GST regime.

Following Centre’s plea, over half-a-dozen BJP-led states were quick to announce reduction in VAT rates.
Certain opposition-led states also followed suit and slashed VAT rate on petrol and diesel.

However, VAT rates differ from state to state, leading to differential rates of fuel.
Since states charge local sales tax or VAT not just on the base price but also on the excise duty levied by the Centre, the total incidence of price reduction is higher.

For states where the local taxes are higher, the effect of price reduction will be comparatively more.
* Delhi: The Arvind Kejriwal-led AAP government has not made any announcement regarding cut in VAT rate on petrol, diesel yet. However, prices have come down owing to Centre’s cut in excise duty.
Petrol prices reduced by Rs 6.07 per litre and that on diesel was slashed by Rs 11.75.
As a result, a litre of petrol now costs Rs 103.97 from Rs 110.04 earlier. While, diesel now costs Rs 86.67 per litre from Rs 98.42.
* Mumbai: The Maharashtra government has also not reduced VAT rate on fuel but prices have come down as a result of lowered excise duty.
In Mumbai, petrol price has been cut by Rs 5.87 to Rs 109.98 and diesel by Rs 12.48 to Rs 94.14.
* Kolkata: The state saw the price of petrol being reduced by Rs 5.82 to Rs 104.67 and that of diesel by Rs 11.77 to Rs 89.79.
* Chennai: Petrol price in Chennai has been reduced by Rs 5.26 to Rs 101.40 and diesel by Rs 11.16 to Rs 91.43.
* Gujarat: Besides the excise cut, the state had an additional reduction of Rs 5.65 a litre on petrol and Rs 4.32 on diesel.
* Uttarakhand: The government has announced a reduction in VAT on petrol by Rs 2 per litre in the state while
* Jammu & Kashmir: VAT on petrol and diesel will come dow by Rs 7 per litre, thereby reducing the petrol price by Rs 12 per litre and diesel by Rs 17 per litre in total.
* Karnataka: The government issued a notification reducing the price of diesel and petrol by Rs 7 per litre.
With this, diesel prices have been reduced from Rs 104.50 on November 3 to Rs 85.03, which is a reduction of Rs 19.47.
Petrol prices have also come down from Rs 113.93 on November 3 to Rs 100.63, which is a reduction of Rs 13.30.
* Northeast states: Six of the eight northeastern states — Assam, Tripura, Manipur, Arunachal Pradesh, Sikkim and Mizoram – announced additional cuts (VAT) in petrol and diesel prices by Rs 7 per litre.
Of these, 4 states are ruled by the BJP — Assam, Tripura, Manipur and Arunachal Pradesh.
Mizoram, governed by the Mizo National Front (MNF) and Sikkim led by Sikkim Krantikari Morcha (SKM), both are partners of the National Democratic Alliance (NDA). They also reduced the VAT on petrol and diesel by Rs 7 per litre.
* Madhya Pradesh: Chief minister Shivraj Singh Chouhan announced a 4 per cent cut in VAT and Rs 1.50 cut in the cess on both petrol and diesel.
As a result, the price of petrol will come down to Rs 106.86 and that of diesel to Rs 90.95 per litre in the state capital Bhopal from Friday.
* Arunachal Pradesh: VAT on petrol has been slashed by Rs 10.20 and that on diesel by Rs 15.22 per litre.
Consequently, petrol will cost Rs 91.87 per litre and diesel will be priced at Rs 79.83 per litre in the state with effect from 12 am on November 5.
* Odisha: Chief minister Naveen Patnaik on Thursday announced reduction of VAT of Rs 3 per litre each on petrol and diesel.
The state government said that with this reduction, the petrol and diesel prices in Odisha are likely to be one of the lowest in the country.
* Puducherry: The AINRC-led NDA government slashed VAT on petrol and diesel by Rs 7 per litre which came into immediate effect.
The price of diesel has come down by Rs 19.08 per litre in Puducherry, Rs 19.06 in Karaikal, Rs 18.92 in Mahe and Rs 19.11 in Yanam region with the range of VAT now being between 6.91 per cent and 8.65 per cent.
Similarly, price of petrol in Karaikal will reduce to 94.69 per litre from Rs 107.52 and that in Puducherry will now come down to Rs 92.52 from Rs 105.32 per litre.
(With inputs from agencies)



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