Twelve Bharatiya Janata Party-ruled states and Odisha on Wednesday announced a cut in the value added tax on fuel after the Centre slashed excise duty on petrol and diesel.
A day before Diwali, the Union government announced that petrol would become cheaper by Rs 5 and diesel by Rs 10 from Thursday.
BJP-ruled states followed suit and announced tax cuts on fuel. Assam, Goa, Tripura, Manipur, Karnataka and Gujarat reduced the value added tax on both petrol and diesel by Rs 7.
The Uttarakhand government also announced that petrol in the state would become cheaper by Rs 7. Uttar Pradesh has reduced the prices of petrol and diesel by Rs 12 per litre, ANI reported, quoting Chief Minister Adityanath’s office.
Haryana Chief Minister Manohar Lal Khattar in a tweet said that his government has reduced value added tax on petrol and diesel, making the fuels cheaper by Rs 12 per litre.
Bihar, which is ruled by BJP’s ally Janata Dal (United), announced that the prices of petrol would be reduced Rs 3.20 per litre and diesel by Rs 3.90 a litre.
Sikkim, which is governed by the Sikkim Krantikari Morcha, announced that petrol and diesel prices have been reduced by Rs 7. The Sikkim Krantikari Morcha is a constituent of BJP-led National Democratic Alliance.
Himachal Pradesh Chief Minister Jairam Thakur said his government would issue a notification regarding the reduction in value added tax on petrol and diesel.
The Odisha government led by the Biju Janta Dal announced a reduction of Rs 3 on value added tax on petrol and diesel each. The changes would be effective from Friday midnight.
“With the reduction, the state government will incur a loss to exchequer of approximately Rs 2,000 crore,” the office of Chief Minister Naveen Patnaik tweeted. “Following the reduction, fuel price will be one of the lowest in country, bringing a huge relief for the people of Odisha.”
Fuel prices have increased sharply across the country in the past few months. The price of one litre of petrol has crossed Rs 100 in most big cities in India. Diesel has breached the Rs 100-mark in more than 18 states and Union Territories.
On Thursday, petrol prices in Delhi decreased to Rs 103.97 per litre and diesel to Rs 86.67 a litre due to the Centre’s reduction in value added tax, reported PTI.
In Mumbai, petrol was priced at Rs 109.98 per litre and diesel Rs 94.14 a litre. In Kolkata, petrol cost Rs 104.67 per litre and diesel Rs 89.79 a litre.
The price of petrol in Chennai came down to Rs 101.40 per litre and diesel Rs 91.43 a litre.
Oil companies revise the fuel prices on the basis of the cost of benchmark fuel in the international market and foreign exchange rates. Across states, the prices of petrol and diesel vary because of different value-added tax and freight charges.
Opposition leaders have frequently criticised the Centre for the rise in fuel prices. Congress leader Rahul Gandhi on Wednesday said that inflation was at its peak even though it was Diwali. “It is not a joke,” Gandhi said. “I wish the Modi government had a sensitive heart for the public.”
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