New Delhi, 5th November 2021: The Modi government gave relief to the general public by cutting excise duty on petrol by Rs 5 per litre and diesel by Rs 10 per litre, while the state governments also gave double benefit by reducing Value Added Tax (VAT) on fuel.
Its effect was that in many states including Assam, Gujarat, Uttar Pradesh, Tripura, Manipur, Goa, Karnataka, Himachal Pradesh, Haryana, Bihar, Orissa, petrol became cheaper by Rs 19 and diesel by Rs 13.30 per litre.
Let’s see how much the price of petrol and diesel has dropped in certain states:
Karnataka
The Karnataka government on Thursday issued a notification to reduce the price of diesel and petrol by ₹7 per litre after the Center cut the price of Rs.10 and Rs.5 respectively by the same. The state government in a release claimed that Karnataka is the first state to reduce sales tax on petrol and diesel. With this, diesel prices were reduced from ₹104.50 on November 3 to ₹85.03, which is a shortfall of ₹19.47. Petrol prices were reduced to ₹100.63 from ₹113.93 on November 3, which is a reduction of ₹13.30, the release said.
Mizoram
Chief Minister Zoramthanga said that a day after the Center announced a reduction in central excise duty on fuel, the Mizoram government on Thursday cut petrol and diesel prices by Rs 7 per litre. The central government on Wednesday cut the excise duty on petrol and diesel by Rs 5 and Rs 10 per litre, after which the state government also announced its decision to reduce it. The price of petrol and diesel will also affect the revenue of the government. According to a report by a news agency, an additional burden of Rs 8,700 crore will increase every month on the government. Meaning the government will have to bear a loss of Rs 43,500 crore in this financial year.
Haryana
Haryana Chief Minister Manohar Lal Khattar on Thursday announced a reduction of Rs 12 in VAT on petrol and diesel.
Gujarat
According to the Chief Minister’s Office, the Gujarat government has reduced the VAT on petrol and diesel by Rs 7 per litre.
State in Eastern India
The Nitish Kumar government in Bihar on Thursday reduced its VAT rate on petrol and diesel by over ₹3 per litre, a day after the Center cut excise duty on products to provide relief to consumers. An announcement to this effect was made by the Chief Minister on his Twitter handle. Based on today’s notification, Karnataka’s share of sales tax on petrol has been reduced from 35 to 25.9 percent and on diesel from 24 to 14.34 percent.
Odisha
The Odisha government on Thursday announced a reduction in VAT on petrol and diesel by Rs 3 per litre and its implementation in the coastal state from midnight of November 5.
Arunachal Pradesh
Arunachal Pradesh Chief Minister Pema Khandu on Thursday announced that his government has reduced the value-added tax rates on petrol and diesel by 5.5 percent. The revised VAT rates will be applicable from midnight of 5th November in the northeastern state.
Madhya Pradesh
Madhya Pradesh Chief Minister Shivraj Singh Chouhan on Thursday announced a four percent cut in VAT and Rs 1.50 in cess on two fuels. As a result, the price of petrol in the state capital Bhopal will be Rs 106.86 and diesel to Rs 90.95 per litre from Friday.
Nagaland
The Nagaland government on Thursday announced a reduction in VAT on petrol and diesel by Rs 7 per litre. Petrol became cheaper by Rs 12 per litre and diesel by Rs 17 in the northeastern state with the reduction in central and state taxes.
Chandigarh
The Chandigarh Administration on Thursday announced a reduction of Rs 7 in VAT on petrol and diesel from midnight of November 4.
Himachal Pradesh
The Himachal Pradesh government on Thursday announced that the VAT on petrol will be reduced by Rs 2 per litre and that on diesel by Rs 4.60. Chief Minister Jai Ram Thakur said that petrol would be cheaper by Rs 12 per litre in the state while diesel would also be cheaper by Rs 17 per litre.
Jammu and Kashmir
The Jammu and Kashmir government on Thursday slashed their prices by an additional ₹7 per litre. According to a notification issued by the government, the Union Territory will now levy 24 percent VAT on petrol and 16 percent on diesel.
Puducherry
The AINRC-led NDA government in Puducherry on Thursday announced a reduction in VAT on petrol and diesel by Rs 7 per litre with immediate effect.