A massive relief for common-man as there is a massive reduction in petrol and diesel prices after Diwali. The cut in excise tax by the Centre, followed by VAT reductions in various states, has resulted in a dramatic decline in petrol and diesel prices, which had hit an all-time high. However, While some analysts believe that petrol and diesel prices will keep climbing as global crude oil costs strengthen, the recent price decrease is likely to give much-needed respite to consumers and businesses. Thus, In this article, we shall discuss the latest notification by the government on price reduction for petrol and diesel.
States trim fuel VAT after the Government lowers excise tax
On the day of Diwali, the national government declared a petrol excise duty reduction of Rs 5 per liter and a diesel excise duty reduction of Rs 10 per liter.
Many states, including Odisha, Arunachal Pradesh, Madhya Pradesh, Nagaland, Himachal Pradesh, Karnataka, Mizoram, Haryana, Uttar Pradesh, Gujarat, and Bihar, have reduced VAT on petrol prices in accordance with the Centre’s action. Furthermore, VAT has also been reduced in three Union Territories: Puducherry, Jammu & Kashmir, and Chandigarh.
Petrol currently costs Rs 103.97 per liter in Delhi and Rs 109.98 per liter in Mumbai due to the decrease. In Kolkata, it has been dropped to Rs 104.67 per liter, and in Chennai, it has been decreased to Rs 101.51 per liter.
Analysts on Massive Reduction in Petrol and Diesel after Diwali
Diesel prices in certain cities, including Bengaluru, Noida, Gurugram, and Lucknow, have gone below Rs 90 per liter for perhaps the first occasion in over a month.
Fuel price reductions may not bring immediate relief in terms of commodity costs, but analysts believe they will lessen the rising strain on the economy and help firms decrease input costs. The petrol and diesel rates after Diwali in major cities are as follows.
|CITY||PETROL (PER LITRE)||DIESEL (PER LITRE)|
|NEW DELHI||Rs 103.97||Rs 86.67|
|MUMBAI||Rs 109.98||Rs 94.14|
|CHENNAI||Rs 101.51||Rs 91.53|
|KOLKATA||Rs 104.67||Rs 89.79|
|BENGALURU||Rs 100.58||Rs 85.01|
The Central Government should issue GST reimbursement so that State Governments can lower their fuel VAT: Sharad Pawar
Following the reduction in excise duty on petrol and diesel by the central govt, NCP chairman Sharad Pawar asked on Friday that states should be granted GST reimbursement or compensation so that state and local governments can lower value-added tax (VAT) on fuels.
“If the Centre grants the GST refund or compensation to all 28 states, state governments would be able to decrease the VAT on petrol and diesel and undertake other social initiatives,” Pawar added.
Pawar’s comments came after the Finance Ministry announced a Rs 5 per liter reduction in fuel excise tax and a Rs 10 reduction in diesel excise duty on the occasion of Diwali. This is the first drop in central excise charges in over three years, despite record-high fuel costs.
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