On November 22, the Chhattisgarh government opted to decrease Value-Added Tax (VAT) on petrol and diesel by 1% and 2%, respectively, over three weeks after the central government reduced excise taxes on the two fuels. With this, the price of petrol in the state would be reduced by 70 paise and that of diesel by Rs 1.36.
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Petrol and diesel prices remained unchanged for the nineteenth straight day in the rest of the country on November 23, Tuesday. The fuel rates have remained the same ever since the central government slashed excise duty on petrol and diesel.
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Petrol and diesel prices fell dramatically in numerous states earlier this month, as additional states announced Value-Added Tax (VAT) cuts in response to the Centre’s decision to reduce fuel excise tax.
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The Centre’s cut in excise tax, followed by reductions in VAT in various states, has resulted in a dramatic decline in petrol and diesel rates after they had hit an all-time high. While some analysts believe that petrol and diesel prices will continue to climb as global crude oil prices rise, the recent price drop is likely to give much-needed respite to residents and businesses.
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It should be mentioned that the national government declared an excise duty drop of Rs 5 per litre for petrol and Rs 10 per litre for diesel on the eve of Diwali. Following the Centre’s decision, various states, including Odisha, Arunachal Pradesh, Madhya Pradesh, Nagaland, Himachal Pradesh, Karnataka, Mizoram, Haryana, Uttar Pradesh, Gujarat, and Bihar, have reduced VAT on fuel prices. VAT has also been reduced in three Union Territories: Puducherry, Jammu & Kashmir, and Chandigarh.
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Petrol currently costs Rs 103.97 per litre in Delhi and Rs 109.98 per litre in Mumbai as a result of the price decrease. In Kolkata, it is now Rs 104.67 a litre, and in Chennai, it is Rs 101.51 per litre.
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Petrol prices have dropped considerably in various places, including Bengaluru (Rs 100.58/litre), Gurugram (Rs 95.90/litre), Noida (Rs 95.36/litre), and Lucknow (Rs 95.28/litre), following the lowering of VAT. However, petrol prices in most cities remain high, at or over Rs 100 per litre.
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Diesel prices have also dropped significantly as a result of the Centre’s and states’ tax reduction. It is now 86.67 rupees a litre in Delhi, 89.79 rupees in Kolkata, 94.14 rupees in Mumbai, and 91.43 rupees in Chennai.
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