Petrol and diesel prices remained unchanged on Wednesday, August 24, 2022. Maharashtra Chief Minister Eknath Shinde announced a reduction in value-added tax (VAT) of Rs 5 per litre on petrol and Rs 3 per litre on diesel on July 14, 2022.
The CM made the announcement after a state Cabinet meeting at Mantralaya on July 14. The decision was welcomed as a “great relief to Maharashtrian and Marathi Manus” by Deputy Chief Minister Devendra Fadnavis.
He stated that the move follows Prime Minister Narendra Modi’s appeal for the common masses’ welfare. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri also chimed in, calling the action a “welcome decision.”
However, fuel rates have decreased significantly after Finance Minister Nirmala Sitharaman announced a reduction in excise tax on petrol by 8 rupees per litre and diesel by 6 rupees per litre in May.
Petrol costs Rs 96.72 a litre in Delhi today while diesel costs Rs 89.62 a litre, as compared to Rs 96.67. After the drop in VAT, one litre of petrol costs Rs 106.31 in Mumbai, while diesel costs Rs 94.27.
The cost of petrol in Kolkata has remained unchanged at Rs. 106.03, while the cost for a litre of diesel stands at Rs. 92.76. In Chennai, petrol and diesel are being sold for Rs. 102.63 and Rs 94.24, respectively.
Fuel prices are revised daily by public sector OMCs such as Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL), and Hindustan Petroleum Corporation Ltd (HPCL) in accordance with benchmark global pricing and foreign exchange rates.
Also Read| How to survive a market crash
Any adjustments in petrol and diesel prices take effect at 6 a.m. every day. Due to local taxes such as VAT and freight costs, retail petrol and diesel prices vary from state to state.
Also Read| How stock markets have evolved since 1860s
Following the Central Government’s decision to reduce excise duty, some state governments reduced VAT on petrol and diesel.
The Kerala government announced a tax reduction on petrol and diesel prices of Rs 2.41 and Rs 1.36 per litre, respectively. The Rajasthan government decreased VAT on petrol by Rs 2.48 per litre and diesel by Rs 1.16 per litre, while the Maharashtra government slashed VAT on petrol by Rs 2.08 per litre and diesel by Rs 1.44 per litre. The Odisha government also cut petrol and diesel taxes by Rs 2.23 and Rs 1.36 per litre, respectively.