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Petrol, Diesel Price Drop: List of States That Have Cut VAT and Those Who Have Not

Petrol and diesel prices recently saw a huge dip as the government slashed excise duty on both the fuels. Petrol price was cut down by Rs 5 while diesel price went down by Rs 10 across India on the eve of Diwali. On this note, several BJP as well as NDA-ruled states also slashed the Value Added Tax (VAT) on fuel prices, to make them even cheaper. However, most Opposition-ruled states were yet to take a decision even after two days following the Centre’s stint. The move was an apparent attempt to provide relief to citizens reeling under the impact of increasing fuel prices.

BJP-ruled states like Gujarat, Uttar Pradesh, Karnataka, Tripura, Goa, Uttarakhand, Manipur, Assam, Bihar and Haryana announced cuts in VAT on Wednesday evening itself. This came a few hours after the Centre announced the excise cut on petrol and diesel prices on the day. The decision came amid pressure from political opponents and consumers over the record surge in fuel prices. States like Punjab, West Bengal, Chhattisgarh and Jharkhand are yet to take a decision.

Biju Janta Dal-ruled Odisha was the only non-NDA state to slash fuel prices as of Thursday. North eastern states like Mizoram and Nagaland joined in too to cut fuel rates. Three Union Territories namely  Puducherry, Jammu and Kashmir, and Chandigarh, also took the same decision. Chandigarh was the latest area to cut down the taxes. “After the Centre cut levy on petrol and diesel, Chandigarh Administration has reduced VAT by Rs 7 on petrol and diesel with effect from midnight of November 4,” said an official statement on Friday.

“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,” Tripura CM Biplab Deb tweeted on Wednesday, shortly after the Centre’s decision.

Himachal Pradesh chief minister Jairam Thakur also made a similar announcement, while the Haryana government on Friday reduced VAT on petrol and diesel on Thursday, November 4. “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 Rs12 per litre,” Haryana CM Manohar Lal Khatter tweeted.

While the Opposition-ruled states have not given any hint about changing or not changing the prices, Kerala finance minister KN Balagopal on Thursday said that it was not possible for the state to reduce VAT on fuels. He even lashed out at the Centre saying that the small price cut was “a temporary measure to save face”.

“The Union government decided to reduce the excise duty on petrol and diesel by a small margin following strong protests from the people. This reduction has been made to temporarily save face in view of the rising public outcry across the country. This is actually a ploy to throw dust in the eyes of the people,” Balagopal was quoted as saying by media organisations. The minister, arguing that Kerala was going through a financial crisis, also said that the Centre must do away with additional tax on petrol and diesel.

The government’s decision came at a time when it was being put under pressure by Opposition parties and citizens on the rising fuel rates. It also comes close in heels with the upcoming  Assembly elections Uttar Pradesh Punjab, and Goa. As of Wednesday morning, petrol and diesel prices were at an all-time high. Diesel rates had crossed the Rs 100 mark in three metropolitan cities including Mumbai, Kolkata and Chennai.

STATES THAT HAVE CUT VAT ON PETROL AND DIESEL

-Gujarat: Petrol ₹7/litre; Diesel ₹7/litre

-Uttar Pradesh: Petrol ₹12/litre; Diesel ₹12/litre

-Uttarakhand: Petrol ₹2/litre; Diesel ₹2/litre

-Assam: Petrol ₹7/litre; Diesel ₹7/litre

-Karnataka: Petrol ₹7/litre; Diesel ₹7/litre

-Goa: Petrol ₹7/litre; Diesel ₹7/litre

-Manipur: Petrol ₹7/litre; Diesel ₹7/litre

-Tripura: Petrol ₹7/litre; Diesel ₹7/litre

-Karnataka: Petrol ₹7/litre; Diesel ₹7/litre

-Odisha: Petrol ₹3/litre; Diesel ₹3/litre

-Bihar: Petrol ₹3.20/litre; Diesel ₹3.90/litre

-Haryana: Petrol ₹7/litre; Diesel ₹5/litre

-Chandigarh: Petrol ₹7/litre; Diesel ₹7/litre

-Madhya Pradesh: Petrol 4 per cent/litre; Diesel 4 per cent/litre

-Himachal Pradesh: Petrol 7.5 per cent/litre; Diesel 8 per cent/litre

-Jammu and Kashmir: Petrol ₹7/litre; Diesel ₹7/litre

STATES THAT HAVE NOT CUT VAT ON PETROL AND DIESEL

-Delhi

-Maharashtra

-Punjab

-West Bengal

-Tamil Nadu

-Kerala

-Jharkhand

– Chhattisgarh

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