Fuel Price Cuts: Maharashtra Slashes VAT on Petrol by Rs 2.08, Diesel by Rs 1.44 Per Litre

The Union government on Saturday slashed the price of petrol by Rs 8.69 per litre and that of diesel by Rs 7.05 per litre following the government decision to cut excise duty on auto fuels.

Mumbai: Day after Centre reduced fuel prices to give common man some relief against growing inflation, the Shiv Sena-led Maharashtra government slashed the VAT on petrol by Rs 2.08 per litre and diesel by Rs 1.44 per litre on Sunday. A statement issued by the government said the state exchequer will have to bear an annual loss of Rs 2,500 crore as a result of this decision.

The Union government on Saturday slashed the price of petrol by Rs 8.69 per litre and that of diesel by Rs 7.05 per litre following the government decision to cut excise duty on auto fuels. Announcing the duty cut through tweets, Finance Minister Sitharaman exhorted all state governments to also cut local sales tax or VAT.

“I wish to exhort all state governments, especially the states where the reduction wasn’t done during the last round (November 2021), to also implement a similar cut and give relief to the common man,” she said.

Meanwhile, former finance minister and senior Congress leader Chidambaram said the states are getting very little by way of sharing of duties on petrol and diesel. “I wonder if they can afford to give up that revenue unless the Centre devolved more funds or gave them more grants,” Chidambaram said. The situation is like being between the devil and the deep sea, he said in a series of tweets.

(With agency inputs)