Fuel rates remain stable today, after a sudden slash in petrol and diesel prices by ₹8 and ₹6 per litre respectively announced by Finance Minister Nirmala Sitharaman on Saturday.
Excise Duty Dropped on Fuel Rates
Slashed excise duty on petrol and diesel prices will result in a drop of ₹9.5 per litre and ₹7 a litre respectively in Delhi. Now in the National Capital after the price drop, the petrol will cost ₹96.72 a litre from the earlier price of ₹105.41 and diesel will cost ₹89.62 a litre from the previous of ₹96.67. This sudden price pulls down will provide a small relief to the pockets of the common man.
Maharashtra Government Reduced VAT on Fuel Rates
Following the drop in excise duty by the Centre on fuel rates, Maharashtra Government also announced the reduction in Value Tax Added Tax (VAT) on petrol and diesel on Sunday. Now after the VAT deduction, the petrol and diesel prices are affected by ₹2.08 a litre and ₹1.44 per litre respectively.
After the drop in excise duty and VAT in Mumbai, Maharashtra, one litre of petrol will cost ₹111.35 and a litre of diesel will cost ₹97.28. As in Chennai, the petrol and diesel will cost ₹102.65 and ₹94.24 per litre respectively. The petrol is being sold at ₹106.03 a litre and diesel at ₹92.76 a litre in Chennai. In Bengaluru, people are paying ₹101.94 for one-litre petrol and ₹87.89 for diesel. In Gurugram, petrol is being retailed at ₹97.81 and diesel at ₹90.05 per litre.
Excise Duty And VAT
Excise Duty on fuel rates are imposed by the Central Government, and in the same way, the State Government charges “VAT ad valorem” on fuel prices. VAT imposed in different states will vary according to the other levied charges. Now as the Central Government has announced the drop in excise duty then the VAT charges will reduce automatically.
State Wise Decisions on Fuel Prices
On Saturday, Kerala Government announced a drop in tax on fuel rates, petrol gets slashed by ₹2.41 and diesel by ₹1.36 per litre respectively.
The price cut announcement by Kerala Finance Minister K N Balagopal said, “The Union government has partially reduced the huge tax on petrol and diesel. The Kerala government welcomes this decision. …state government will reduce state tax on the price of petrol and diesel by Rs 2.41 and Rs 1.36 per litre respectively”.
A Tweet from Chief Minister Ashok Gehlot wrote, “Due to the reduction in the prices of petrol and diesel by the central government, the state government will reduce VAT by Rs 2.48 per litre on petrol and Rs 1.16 per litre on diesel. With this, petrol will be cheaper by Rs 10.48 and diesel by Rs 7.16 per litre in the state.”
Maharashtra Government announced a reduction of VAT on petrol and diesel prices to ₹2.08 and ₹1.44 respectively.
Odisha Government has decided to reduce the fuel prices, petrol rates dropped by ₹2.23 and diesel by ₹1.36 a litre.
Bihar Government’s decision is still pending, usually in favour of the fuel price drop.