Fuel Prices in India: 22 States and 2 UTs reduce VAT on Petrol and Diesel

As the Centre on Wednesday announced that the prices of petrol and diesel will be reduced by ₹5 and ₹10 respectively from Thursday, 22 States and two union territories have also undertaken reduction of VAT on Petrol and Diesel to give relief to consumers. However, there are 14 States and 6 UTs which have not reduced VAT in Petrol and Diesel.

These states are Maharashtra, Delhi, West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Kerala, Meghalaya, Andaman and Nicobar, Jharkhand, Odisha, Chattisgarh, Punjab, and Rajasthan. 

Petrol and diesel prices slashed by Rs 5 and Rs 10

In what comes across as a slight relief to the citizens, the government decided to slash the prices of petrol and diesel by Rs 5 and Rs 10 respectively from Thursday, November 4. "On the eve of Diwali, Government of India announces excise duty reduction on petrol and diesel. Excise duty on Petrol and Diesel to be reduced by Rs 5 and Rs 10 respectively from tomorrow", the government's statement said. As per government sources, the reduction in excise duty on diesel being double that of petrol is meant to be a boost to the farmers during the upcoming Rabi season. States have also been urged to reduce VAT on petrol and diesel to give relief to consumers.

After seven straight days of increase, fuel prices remained constant on Wednesday. The most recent hike, on November 2, pushed the price of petrol in Delhi to an all-time high of Rs 110.04 a litre. On November 3, the pricing remained unchanged. On the day, the price of diesel remained steady at Rs 98.42 per litre.

A government release said that in recent months, crude oil prices have witnessed a global upsurge. Consequently, domestic prices of petrol and diesel had increased in recent weeks, exerting inflationary pressure. The world has also seen shortages and increased prices of all forms of energy.

The release stated, "The Government of India has made efforts to ensure that there is no energy shortage in the country and that commodities such as petrol and diesel are available adequately to meet our requirements."