After Centre's Excise Duty Cut On Petrol And Diesel, All BJP-ruled States Provide Additional Relief By Slashing VAT

A day after the Union Government reduced excise duty on fuel, several States lowered Value Added Tax (VAT) on petrol and diesel to give some respite to consumers.

Gujarat, Mizoram and Sikkim governments have reduced the Value Added Tax (VAT) on petrol and diesel by ₹7 per litre each. The Haryana government too announced a reduction in VAT on the fuels on Thursday, making them cheaper in the BJP-JJP-ruled State by ₹12 per litre on Deepavali. Odisha too slashed the prices of petrol, diesel by ₹3 per litre.

The Uttar Pradesh government too on Wednesday lowered the VAT on the two fuels making them cheaper by ₹12 per litre in the state.

In addition, half a dozen BJP-ruled states have announced a cut in VAT rates but a formal notification has so far been issued only in case of four. Puducherry saw an additional Rs 7 a litre reduction in both petrol and diesel price because of the cut in value added tax (VAT).

Goa saw an additional Rs 5.47 a litre cut in petrol and Rs 4.38 on diesel.

Arunachal Pradesh Chief Minister Pema Khandu announced that his government has reduced the value-added tax rates on petrol and diesel by 5.5 per cent. Petrol will be cheaper by over Rs 10 per litre and diesel by around Rs 15 in the State.

“Chief Minister Bhupendra Patel has announced to reduce the prices of petrol and diesel in Gujarat by ₹7 per litre,” the Gujarat CMO said in a statement issued late at night.

“ Following Prime Minister Narendra Modi’s decision to reduce the excise duty on petrol and diesel, the Gujarat government has also decided to reduce the VAT on petrol and diesel and implement this reduction in the entire state from midnight,” it stated.

With this decision, petrol will now cost ₹95.13 per litre and diesel ₹89.12 per litre in Ahmedabad, while the two fuels will cost ₹94.89 and ₹88.89, respectively, in Surat.

“...on the auspicious occasion of Diwali, I would like to announce that the State Government will be reducing the prices of Petrol & Diesel in the state by Rs.7/(seven) per liter as a Diwali gift. This will come into effect starting today i.e 04/11/2021,” Sikkim Chief Minister Prem Singh Tamang tweeted.

Together with the reduction of taxes announced by the Sikkim government shortly after midnight, petrol would be cheaper by ₹12 per litre and diesel by ₹17 per litre in the State.

Petrol was retailing at ₹110.60 per litre and diesel at ₹100.80 per litre in state capital Gangtok on Wednesday.

"Glad to announce that #Mizoram Govt. will reduce VAT on Petrol & Diesel each by Rs. 7 with immediate effect from today," Chief Minister Zoramthanga tweeted.

On Thursday, petrol price in state capital Aizawl fell to Rs 101.30 per litre, while diesel is now sold at Rs 86.37 per litre.

"On the occasion of Diwali, the central government has announced a reduction in prices of petrol and diesel. Taking it forward, the Haryana government has also reduced the rate of VAT on petrol and diesel in the State.

"Now, both petrol and diesel in entire Haryana will be cheaper by ₹12 per litre," Haryana Chief Minister said.

The Nitish Kumar government in Bihar on Thursday reduced its VAT rate on petrol and diesel by more than ₹3 per litre. "Following the Centre’s move to reduce petrol and diesel prices, the state government has decided to provide additional relief to people by reducing the VAT rates. The prices of petrol will be lowered further by Rs 3.20 per litre while for diesel it will be Rs 3.90 per litre," Mr. Kumar tweeted.

Buckling under pressure, the Centre cut excise duty on petrol and diesel by a record ₹5 and ₹10 per litre on Wednesday.

Petrol costs ₹103.97 per litre in Delhi against ₹110.04 per litre, according to a price notification of state-owned fuel retailers. Diesel rates accordingly reduced to ₹86.67 per litre from ₹98.42 per litre.

In Mumbai, petrol price has been cut by ₹5.87 to ₹109.98 per litre and diesel by ₹12.48 to ₹94.14 per litre. Kolkata saw the price of diesel being reduced by ₹5.82 to ₹104.67 per litre and that of diesel by ₹11.77 to ₹89.79 per litre.

Petrol price in Chennai has been reduced by ₹5.26 to ₹101.40 per litre and diesel by ₹11.16 to ₹91.43 per litre.