Petrol, diesel prices fall sharply as more states
Petrol and diesel prices in many states fell sharply on Friday as more states announced Value-Added Tax (VAT) cuts after the Centre’s move to slash excise duty levied on fuel.
The reduction in excise duty by the Centre, followed by a reduction in VAT in several states, has led to a sharp drop in petrol and diesel rates after they had reached a record high.
While some experts feel that petrol and diesel prices may continue to rise due to firming global crude oil rates, the recent price cut is expected to provide much needed relief to citizens and businesses.
It may be noted that on the eve of Diwali, the central government had announced an excise duty cut of Rs 5 per litre for petrol and Rs 10 per litre for diesel.
Following the Centre’s move, many states have slashed VAT on fuel prices, including Odisha, Arunachal Pradesh, Madhya Pradesh, Nagaland, Himachal Pradesh, Karnataka, Mizoram, Haryana, Uttar Pradesh, Gujarat and Bihar. Three Union Territories — Puducherry, Jammu and Kashmir and Chandigarh — have also slashed VAT.
Following the cut, petrol now costs Rs 103.97 per litre in Delhi and Rs 109.98 per litre in Mumbai. It has been reduced to Rs 104.67 per litre in Kolkata and Rs 101.51 per litre in Chennai.
In some cities, including Bengaluru (Rs 100.58/litre), Gurugram (Rs 95.90/litre), Noida (Rs 95.36/litre), Lucknow (Rs 95.28/litre), petrol rates have fallen sharply after VAT reduction.
However, the fuel rates remain elevated at above Rs 100 per litre in most cities.
Diesel prices have also fallen sharply after the tax cuts by the Centre and states. It has been reduced to Rs 86.67 per litre in Delhi, Rs 89.79 per litre in Kolkata, Rs 94.14 per litre in Mumbai and Rs 91.53 in Chennai.
For the first time in over a month, diesel rates in some cities, such as Bengaluru, Noida, Gurugram and Lucknow -have fallen below Rs 90 per litre.
The reduction in fuel prices may not provide immediate relief in terms of commodity costs, but experts believe that it will reduce inflationary pressure on the economy and also help businesses lower input costs.
Petrol and diesel prices in major Indian cities:
|CITY||PETROL (PER LITRE)||DIESEL (PER LITRE)|
|NEW DELHI||Rs 103.97||Rs 86.67|
|MUMBAI||Rs 109.98||Rs 94.14|
|CHENNAI||Rs 101.51||Rs 91.53|
|KOLKATA||Rs 104.67||Rs 89.79|
|BENGALURU||Rs 100.58||Rs 85.01|