The petrol and diesel prices remained unchanged on Wednesday across various cities in the country including the national capital Delhi, metro cities Mumbai, Kolkata and Chennai.
Currently, the cost of one litre of petrol in Delhi stands at ₹103.97 and that of diesel at ₹86.67 per litre. In Mumbai, the petrol and diesel prices have remained static at ₹109.98/litre and ₹94.14 per litre, respectively.
As for Kolkata and Chennai, petrol and diesel cost ₹104.67 and ₹89.79 and ₹101.40 and ₹91.43 respectively in Chennai. Prices differ from state to state, depending on the incidence of local taxes and cost of transportation.
Following the decision of the Government of India to reduce central excise duty on petrol and diesel by ₹5 and ₹10 respectively, 25 states and Union Territories have also undertaken a commensurate reduction of VAT on Petrol and Diesel so far to give relief to consumers, informed the Ministry of Petroleum and Natural Gas last week.
Additionally, the Chhattisgarh government announced its decision to reduce Value-Added Tax (VAT) on petrol and diesel by 1 per cent and 2 per cent, respectively, nearly three weeks after the Centre cut excise duties on the two fuels. With the reduction in VAT, the price of petrol will come down by 70 paise and that of diesel by ₹1.36 in the state, a government official said.
The decision was taken during a cabinet meeting chaired by Chief Minister Bhupesh Baghel here at his official residence, he said. The move will cause a loss of nearly ₹1,000 crore to the state exchequer, the official said.
“Providing major relief to the people of the state. Chief Minister Bhupesh Baghel-led cabinet has decided to cut the prices of petrol and diesel. VAT on diesel and petrol has been reduced by 2 per cent and 1 per cent respectively. The state government will bear the revenue loss of about ₹1,000 cr..” the Chief Minister’s Office (CMO) tweeted.
“The state government had been imposing 25 per cent VAT on petrol and diesel. With this rate cut, the price of petrol will come down by 70 paise and that of diesel by ₹1.36 in the state,” the public relations department official said.
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