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Fuel to get cheaper as Gujarat, Maharashtra cut VAT on petrol and diesel

Oct 10, 2017 02:50 PM IST

Move follows the Centre decision to bring down down excise duty on petrol and diesel by Rs 2 per litre

petrol diesel price hike

In a relief to the citizens of Maharashtra and Gujarat just ahead of Diwali, the two states have slashed value added tax (VAT)on petrol and diesel. The Gujarat government on Tuesday reduced the VAT on petrol and diesel by 4 percent, becoming the first state to announce a reduction in VAT while, the Maharashtra Cabinet has decided to slash prices of petrol and diesel by Rs 2 and Re 1 respectively, effective midnight.

The effective price of petrol in Gujarat from mid-night today will be Rs 66.53 per litre and that of diesel Rs 60.77 per litre, the chief minister added. The state government will have to take a hit of Rs 2,316 crore annually on back of VAT reduction.

The reduction in tax comes just before Diwali in the state, where the Assembly polls are due around the year-end. With this rate cut, the price of petrol will come down by Rs 2.93 and that of diesel by Rs 2.72 in the state, Gujarat Chief Minister Vijay Rupani said.

The lowering of tax in the poll-bound Gujarat follows Union Finance Minister Arun Jaitley recently writing to all state governments nudging them to reduce taxes on petrol and diesel.

Petrol & Diesel Rates Nov 28, 2022

Monday, 28th November, 2022
Petrol Rate in Mumbai Nov 28, 2022
  • Current Petrol Price Per Litre
    106
Monday, 28th November, 2022
Diesel Rate in Mumbai Nov 28, 2022
  • Current Petrol Price Per Litre
    94
+ Show

In Maharashtra, the Devendra Fadnavis government also slashed VAT by Rs 2 a litre on petrol and diesel.

A Rs 2 per litre cut will cost the state exchequer nearly Rs 2,600 crore. The state currently levies 26 percent VAT on petrol and 24 percent on diesel in Mumbai, Thane and Navi Mumbai.