After Center cuts excise duty, 8 NDA ruled states reduce VAT on petrol, diesel prices

New Delhi: Hours after the Center reduced excise duty on fuel prices a day before Diwali, several state governments, including Assam, Bihar, Karnataka and Tripura, followed suit and slashed value-added tax (VAT) on petrol and diesel.

The Assam government led by Chief Minister Himanta Biswa Sarma announced a reduction in VAT by Rs 7 on the prices of petrol and diesel.

Biswa said in a tweet, “In line with the decision of Hon’ble PM @narendramodi, I am happy to announce that Assam Government will reduce VAT on Petrol and Diesel by Rs 7/- with immediate effect.”

Even CM Nitish Kumar’s government in Bihar reduced VAT on petrol by Rs 1.30 and on diesel by Rs 1.90.

“State VAT in Bihar will be cut by Rs 1.30 on petrol and Rs 1.90 on diesel, in addition to excise duty by Rs 5 and Rs 10. Effectively, petrol will be cheaper by Rs 6.30 and diesel by Rs 11.90.” Former Deputy CM and Rajya Sabha MP Sushil Kumar Modi tweeted.

Additionally, the Karnataka government of Basavaraj Bommai also announced a reduction of Rs 7 in VAT on petrol and diesel.

Karnataka CM Basavaraj Bommai in a tweet said, “Karnataka state government has decided to reduce the price of diesel and petrol by Rs 7 per litre. This will result in a loss of Rs 2,100 crore to the exchequer.” 95.50 per liter and diesel Rs 81.50 per liter in the state.

Even as Tripura Chief Minister Biplab Kumar Deb on Wednesday announced that petrol and diesel prices in the state will be reduced by Rs 7 from November 4 (Thursday).

The Goa government also followed suit and reduced the price of petrol by Rs 7 and diesel by Rs 7 per liter, thereby reducing the price of diesel by Rs 17 per liter and petrol by Rs 12 per litre.

Uttarakhand CM Pushkar Singh Dhami also announced a reduction of Rs 2 per liter in petrol. However, he did not say anything about the price of diesel.

The Chief Ministers of Himachal Pradesh and Manipur also announced reduction in fuel prices.

While the Himachal CM said that the reduction in petrol and diesel prices would be announced soon, the Manipur CM announced a reduction of Rs 7 in VAT on fuel prices with immediate effect.

Earlier in the day, the Center increased the Diwali bonus for the citizens of the country by reducing the excise duty on petrol by Rs 5 and on diesel by Rs 10 with effect from tomorrow.

After the cut in excise duty, the price of petrol will come down to Rs 105.04 from the current rate of Rs 110.04 per liter in Delhi. Diesel rate will be reduced from Rs 98.42 per liter to Rs 88.42.

Center urged states to reduce VAT on petrol and diesel to provide relief to consumers.

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