In a big move, Centre has decided to ask state governments to cut the value-added tax (VAT) on fuel in order to provide further relief to consumers. Petroleum Minister Dharmendra Pradhan said that Finance Ministry will ask state chief ministers to cut Retail VAT on Petrol and Diesel by as much as 5 per cent. The states charge anywhere between 25 to 49 per cent VAT on diesel and petrol. It should be noted that major states are currently ruled by National Democratic Alliance, and if a proposal is sent from Narendra Modi government for deductions of taxes, there might be chances that move may get a go ahead from the CMs.
The move comes a day after the government cut basic excise duty on petrol and diesel by Rs 2 per litre in a move to provide some respite to the people regarding their travel bills soaring over recent months. The cut in taxes came as petrol and diesel prices have continued to rise despite oil minister Dharmendra Pradhan having said two weeks ago that the retail fuel prices would ease out in a few days. As of Tuesday, 3rd October, 2017, petrol price in Delhi had risen by 50 paise per litre, and was at Rs 70.88 per litre in New Delhi. The price of diesel had also seen a similar rise since 13 September. Diesel was being sold in Delhi at Rs 59.14 per litre on Tuesday.
However, after the cut in excise duty, petrol price has fallen as much as Rs 2.5 per litre to Rs 68.38 per litre from today, Wednesday, 4 October, in Delhi at Indian Oil Corp petrol pumps. While the price of diesel is set at Rs 2.25 per litre to Rs 56.89 per litre. Read more
Latest posts by Financial Express (see all)
- Power sector NPA woes: Bankers to meet Thursday to discuss ways to resolve Rs 1.4 lakh crore debt - September 20, 2018
- Delhi to save big on electricity bills? Over 2,000 solar rooftop connections expected by year-end, says BSES - September 20, 2018
- System based on radio waves: Railways to test European signalling system - September 20, 2018