Petrol and Diesel becomes cheaper in Gujarat and Maharashtra

Petrol Diesel Prices Gujarat today decided to cut down VAT on fuel by 4%. Chief Minister Vijay Rupani announced this on Tuesday morning

The decision to reduce the value added tax (VAT) on petrol and diesel was taken in state cabinet on Tuesday.

Additional Chief Secretary of Maharashtra (Finance) DK Jain told BusinessLine that the State government would be losing ₹3,067 crore revenue due to the reduction in Value-Added Tax on petrol and diesel.

He said that the state government would reduce taxes on petrol and diesel in the coming two or three days.

The reduction comes after the state government cut prices of auto fuel by 60 paise soon after the Centre's decision to reduce basic excise duty by Rs 2 per litre from October 4. The decision announced by chief minister Vijay Rupani in Gandhinagar will make petrol cheaper in the state by Rs2.93 and diesel by Rs2.72 a litre from Wednesday. "Because of a cut in excise duty and drop in worldwide prices, fuel prices have turned advantageous for consumers", he said.

Last week, it reduced excise duty on petrol to Rs 19.48 per litre from Rs 21.48 per litre and on diesel to Rs 15.33 a litre from Rs 17.33 previously. Today the prices are Rs 68.45 and Rs 57.00 per litre respectively.

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If petrol and diesel prices would have been left unrestrained, BJP would have faced additional flak for contributing to a cheerless, inflation-marred Diwali.

"All the petroleum products must be brought under the GST regime so that our long-pending demand of "one nation, one rate" can be fulfilled to benefit the consumers", Federation of All Maharashtra Petrol Dealers Association President Uday Lodh had said earlier.

"This is the proposal of the Ministry of Petroleum".

The Finance ministry took to Twitter to announce the same. Consumer interest is top priority. "The responsibility of people's welfare rests equally with union and state governments", said Pradhan.

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