States have been urging Centre to reduce Value Added Tax on petrol, diesel (Representational)
Highlights
- This came just hours after Centre announced a cut in excise duty on fuel
- The price cuts will come into effect from Thursday - November 4
- States have been for long urging the Centre to reduce the VAT on fuel
Ten BJP-ruled states - Assam, Tripura, Manipur, Karnataka, Goa, Uttar Pradesh, Gujarat, Haryana, Himachal Pradesh and Uttarakhand - announced additional cuts in petrol and diesel prices hours after the Centre reduced excise duty on petrol and diesel by Rs 5 and Rs 10 on the eve of Diwali, in an attempt to provide relief to people reeling under the impact of spiralling fuel prices. The price cuts will come into effect from Thursday, when the nation celebrates Diwali.
Assam, Tripura, Manipur, Karnataka and Goa reduced the prices of both petrol and diesel by Rs 7 per litre in addition to the Centre's relief. Uttarakhand Chief Minister Pushkar Singh Dhami on Wednesday said that the Value Added Tax (VAT) on petrol would be reduced by Rs 2 per litre in the state.
"Following Hon'ble PM Shri @narendramodi Ji led central govt's decision on reduction of excise duty on petrol & diesel. #Tripura govt has also decided to reduce petrol & diesel cost by Rs 7 from tomorrow," Biplab Deb, the Chief Minister of Tripura, tweeted on Wednesday.
Himachal Pradesh Chief Minister Jairam Thakur said his government would also reduce (VAT) on petrol and diesel.
Haryana announced a reduction in VAT on petrol and diesel today, making them cheaper by Rs 12 per litre in the state.
Chief Minister Manohar Lal Khattar tweeted: "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 Rs 12 per litre."
Odisha's ruling Biju Janta Dal - which has on several occasions extended its support to the BJP-led alliance NDA - also announced a VAT reduction of Rs 3 per litre on both petrol and diesel. The new prices will come into effect from midnight of November 5. With this, diesel price per litre will go below Rs 100, while petrol will be available at a little over Rs 100.
Odisha will incur an annual loss of Rs 1,400 crore due to the additional cuts, a statement issued by Chief Minister Naveen Patnaik's office said, reported news agency PTI. This will be in addition to the loss of Rs 700 the state will face due to the excise duty reduction by the central government, it added.
The Janata Dal (United), an ally of the BJP in Bihar, today reduced VAT rates on petrol and diesel by over Rs 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," Chief Minister Nitish Kumar tweeted.
States had long urged the Centre to reduce VAT on petrol and diesel. Fuel prices have been climbing over the last few months. Petrol prices in some states had touched Rs 120 per litre while diesel has crossed the Rs 100 per litre-mark in three metros.
The Opposition has been attacking the ruling BJP over rising prices of fuel. On November 1, Congress leader Rahul Gandhi tweeted in Hindi that one should beware of "pickpockets" along with the hashtag "tax extortion".
The price of petrol in Delhi stood at Rs 110.04 per litre on Wednesday while diesel was being sold at Rs 98.42 a litre. In Mumbai, petrol was at Rs 115.85 per litre while diesel was at Rs 106.62 per litre.
In recent months, crude oil prices have witnessed a global upsurge. Consequently, domestic prices of petrol and diesel skyrocketed in recent weeks. "Today's decision is expected to further spur the overall economic cycle," the Centre said in a statement.